Macy’s runs into Christmas stumbling block
The recent recovery of US department store Macy’s looks to have hit a bump in the road at Christmas.
Despite a recent return to profitability, the retailer, which stocks watch brands like Tissot, Seiko, Bulova, and Casio, saw footfall collapse by 20.7% on ‘Super Saturday’ (the last Saturday before Christmas), which was the steepest decline among major US retailers.
The data from location intelligence platform Placer.ai marks a sharp contrast to the “retail turnaround of the year” narrative led by CEO Tony Spring. Under his leadership, Macy’s recently posted an $11 million quarterly profit, with analysts praising tidier stores and improved staffing.
The backdrop of economic uncertainty in the States seems to have played a part, as value chains like Ollie’s Bargain Outlet (+20.9%) and Ross (+9.1%) performed much better.
Industry experts note that while the dip is significant, Macy’s financials remain solid. Data, analytics, and insights platform GlobalData cautioned against pessimism, with the company’s Neil Saunders calling the company’s recent performance a “chink of light” following years of decline.
