Will Macy’s become a discount store? Retailer shares grim sales report

Macy’s could be morphing into the next T.J.Maxx, focusing on discount offers for customers after the company announced yet another weak quarter of sales.

The retailer reported another weak quarter of sales in the first quarter of 2017, totaling $5.4 billion — a decrease of 7.5 percent. That’s compared to sales of $5.7 billion in the same period last year. The decline in total sales reflects, in part, the store closings announced in 2016, according to a company investor’s call.

» STORE CLOSINGS: What’s really going on?

The department store chain has also invested more in its off-price concept, called Macy’s Backstage. The company added 11 new Backstage stores within existing Macy’s stores in the first quarter. The stores, similar to Nordstrom Rack, offer discounted prices on brand clothing up to 80 percent off.

The retailer is also adding self-service systems in its shoe departments across the nation, letting customers service themselves instead of having to ask an employee to find the shoes they want.

» TAKE OUR POLL: Where will you miss shopping the most?

“In 2017, we are focused on taking actions to stabilize our brick and mortar business, including the testing and iteration of additional pilot programs in order to bring them to scale in future years,” said Jeff Gennette, president and chief executive officer of Macy’s, Inc. “At the same time, we will invest to aggressively grow our digital and mobile business, while continuing the integration of our online and offline experience to allow our customers to shop the way they live.”

About the Author