Tags: Macys | retail | Black Friday | online

Death of Store Experience 'Greatly Exaggerated,' Macy's CEO Tells CNBC

Death of Store Experience 'Greatly Exaggerated,' Macy's CEO Tells CNBC

By    |   Monday, 30 November 2015 10:28 AM

Macy's Chairman and CEO Terry Lundgren says departments stores have a bright future despite predictions of their demise at the hands of online retailers.

He pointed to the buying frenzy when Macy's opened for business on Thanksgiving night at the retailers' midtown Manhattan flagship store.

"If you saw the traffic when we opened the doors at 6 pm, flowing into stores like Macy's Herald Square, you'd say people definitely want to shop on that night and in a store like Macy's," Lundgren said to CNBC. "So we feel great about what's transpired here."

Online retailer sales were estimated to have grown 22 percent from a year earlier to $1 billion on Black Friday, according to the Adobe Digital Index, which tracks store websites.

Macy’s sees opportunity in stores and online.

"We are the seventh-largest internet company retailer in America," Lundgren told CNBC. "The online business is a complete strength for Macys.com and Bloomingdales.com."

A big difference from several years ago is seen in the way shoppers bring their cell phones into stores to do research before making a purchase.

"Consumers are starting the journey with their phone, doing their research," Lundgren said, "then they come into the store to "try on the clothes, or touch that handbag, or have makeup applied, all those things that are more tactile."

ShopperTrak, an online research firm, estimated that brick-and-mortar store sales fell $1 billion on Black Friday from a year earlier as people shopped online.

Apple, Amazon.com and J.C. Penney were among the retail winners this year, according to Forbes reporter Clare O’Connor.

Apple’s iPad Air 2 and iPad Mini were among the top-selling electronic gadgets over the Black Friday weekend, according to Adobe. Amazon’s 7-inch Fire tablet sold well, and is now back-ordered through mid-December. J.C. Penney drew crowds with its heavy discounts.

The losers were Neiman Marcus and Walmart, Forbes said.

Neiman’s website “suffered a Black Friday nightmare: its website went down at around 8am EST, according to performance monitors Catchpoint Systems. When the site returned to normal on Saturday, Neiman tweeted that customers could snag an extra 33% off through that evening.”

Meanwhile, Walmart’s Black Friday was marred by bomb threats, fights among shoppers scrambling for discounted items and protests by workers demanding better pay.

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Macy's Chairman and CEO Terry Lundgren says departments stores have a bright future despite predictions of their demise at the hands of online retailers.
Macys, retail, Black Friday, online
377
2015-28-30
Monday, 30 November 2015 10:28 AM
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