5/2/2024 0 Comments Macy's customer journey mapWe have a lot of work for us ahead for us on that, but we are quite excited about the early learnings in that. To achieve that, there’s more work to be done, particularly around getting better with functionality and experience, but also looking at what can be done with the firm’s Marketplace offering. But we do believe that digital will grow in the future. So, that reset has really now occurred post-pandemic, and we have a new baseline for digital penetration in ’23. We do see it stabilizing right now at the 32%-34% range. So, kind of going through digital penetration through the years. And when you look at our business in 2022, it was up 31% versus 2019, with traffic up 7% and conversion up 11%, but definitely a drop off from where we were in ‘21. Gennette says of the current digital contribution:ĭigital obviously grew significantly over 2019. Like almost every other brand, it’s got a digital story with some twists and turns around the pandemic. So how does that backdrop map onto the reality of the situation on the ground for Macy’s? The firm has, in recent years, made significant efforts to re-invent itself as an omni-channel retailer, with some success. We believe the desire to be with loved ones, go on vacation and attend events has not diminished and expect gift giving and occasion-based demand to continue. With the continued expansion of a hybrid work model, there are more in-person meetings and flexibility for personal travel. Inflation has surpassed wage growth and revolving credit is rising.We believe discretionary spend will be under pressure across income tiers and expect the allocation of disposable income to continue shifting towards services and essential goods.Įven as consumers re-prioritize spend, there is opportunity. But prices for services and goods are higher. Jobs and wages are strong and savings levels are elevated relative to historic levels. On the surface, the consumer is in better shape than 2019. He explains:Īs a modern department store operating from off-price to luxury, we have a full view of income tiers, aided by our high penetration of loyalty members and robust credit card portfolio. That’s the starting point for a dicussion around what the retail landscape looks like right now from Macy’s CEO Jeff Gennette. Turning to 2023, there is conflicting data regarding the US consumer.
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