Online GMV reaches $10 billion, Macy's accelerates strategic transformation

Recently, Macy's said that it expects its online sales to reach $10 billion by 2023. To achieve this goal, Macy's said it will invest $650 million to improve consumers' online shopping experience, the company's supply chain, and technological transformation.

Online sales increased by 21%

According to Gennette, in the fourth quarter of 2020, Macy's online sales increased by 21%, and its digital sales accounted for nearly 44% from 30% in 2019. Among them, about a quarter of digital sales were completed in stores, which is the so-called online purchase and offline pickup.

Relevant data show that in the fourth quarter alone, Macy's added 7 million new customers , most of whom were under the age of 40. In addition, Macy's said that the growth in its digital sales was mainly due to the growth in sales of products in categories such as beauty, jewelry and watches.

In terms of inventory, Macy's overinventory problem in the fourth quarter of 2020 decreased by 27% compared with the same period last year, and the inventory backlog problem of poor-selling goods was improved.

Accelerate digital transformation strategy

In February 2020, Macy's launched the Polaris turnaround plan, which showed that it would close more offline stores and direct more investment to digital channels. It turns out that Macy's strategic transformation is very wise. The COVID-19 pandemic has increased the pressure on physical retail business, while e-commerce has ushered in new development.

Macy's said that in order to accelerate its strategic transformation, it will provide consumers with an immersive online shopping experience so that customers can shop easily and quickly. This includes refreshing the website homepage, selecting visual content, and more accurate search and convenient browsing functions.

In terms of online shopping experience, beauty products are the most affected , not only because beauty products account for a large share, but also because consumers in this category pay more attention to shopping experience. Previously, Macy's said that it expects online revenue growth in the beauty category to exceed 60% in 2020. In addition, it also plans to help consumers return products with faster payment methods to improve consumers' online shopping experience.

Macy's has also added pillars to the plan, including building a modern technology platform and implementing an associate experience program to drive sales growth and profitability.

Macy's

GMV

Strategic transformation