Macy’s entrances are decorated with Christmas decorations on December 04, 2020 in New York City.

Roy Rochelin | Getty Images Entertainment | Getty Images

as such Macy It is preparing to release its third quarter earnings on November 18 before the retail season. Boundary?

A.D. By 2023, digital sales will reach $ 10 billion, up from $ 7.6 billion by 2020, he said. But while Macy’s dotcom sales have surpassed the same store revenue for years – and the company operates 788 stores in its portfolio – raises another question: Will Messi’s current management team, led by a “major store executive”, be like a retailer? Investor has recently identified the CEO of Macy’s Jeff Genet, the best choice to lead the country’s largest retail department store, which is increasingly being driven by complex, digital and digital-based competitors such as Amazon?

Activist investor Jana Partners said in a statement to investors that both questions have been on the table since October. Macy’s can increase review. By running the e-commerce business. Jana, who has a history of pushing large retailers to push operations, in Macy and That approach soon reminded the board of the company In a letter to eliminate the digital arm, Messi’s online arm is estimated to be worth $ 14 billion, double the value of today.

Macy refuses to comment before the income.

Jana Partners has not commented on his role in Macy’s, but a source close to the matter has suggested that Messi be reviewed. A similar strategy followed by Sachs Fifth Avenue Bringing investors to the dot-com business can give them a better place to accelerate growth, increase value, and attract high-tech talent. This last point has been emphasized twice in Sax recently, first when a former Amazon Exeter joined the new Saks.com board – preparing the first public offering – and in the summer, when another former Amazon executive took on the role of COO. In the new independent Sachs of 5Th E-Commerce Company.

“Companies learn from people who aren’t in their own swimming pools,” said Bernadet Nixon, Algolia, CEO of a technology company that helps retailers facilitate e-commerce. Nixon sees many high-tech executive talent industry lines. “At the end of the day, we’re in the digital world and Amazon is setting up the bar, not Lord and Taylor, Sachs or Macy,” she said.

Genet Appointed CEO in 2017, she has been tasked with overhauling the then-defunct store model on Amazon and cheap fast fashion designers. Genet has only been with Macy’s since 1983, when he was a graduate of Stanford University and was employed in his executive training program. According to the Wall Street Journal, the experience of both retail and shop operations has grown to the level of Macy, and has brought millennial buyers and entertainment to the top of Massie’s stores with two major goals.

The three-decade-old store will be used to explain why the future of the retail landscape is more digital.

“It is clear to me that the overall retail ecosystem is a strong alliance with the best-selling e-commerce offerings of the best in malls and offshore stores, and we are moving forward as a strong, digital-led consumer business,” said Genet August 19 in the second quarter of May. She spoke at a conference.

Massie’s stock price rises by 34% After the Partners’ first suggestion by Spinoff, the love from Wall Street, which historically sees Genet as a solid brick and mortar, is rare.

“Messi’s online business is not getting the respect it deserves,” said Morningstar Research, an equity analyst at Morningstar Research. “He is one of the largest online retailers in the country and his estimates are not always reflective.”

Schwartz said they are making improvements to Macy’s online, although it does not solve the problem of the few people who buy at Mass. The retailer In February 2020, it announced a turnaround plan, which included the closure of 125 low-performing stores, another 100 upgrades, and a major investment to accelerate digital business.

In the second quarter, more than 40% of the company’s 5 million new customers came to Macy’s digital way, Genenett said in an incoming call. In an effort to take advantage of its most important customers – those who buy from Macy in person and online cost three times as much as those who buy only one or the other – Macy has invested in data analysis so when can he follow and customize what he buys, then promotion programs and branding.

Although analysts say there are still many sources, Macy’s is also using social media and digital messaging to try and drive people to their stores.

Jessica Ramirez, a retail research analyst with Jane Haley and her associates, said: “The retail scene is slowly changing and the epidemic is on the rise – there were so many stores in the US.” “With Macy’s, the square footage was funny. But, there’s still fun to visit a clothing store; you just need something to attract customers.”

In the future, space for brick and mortar stores in retail will become a branding channel, analysts say. “You still have people who run large corporations in the late 1980s and 1990s. They were stuck with the idea that a physical store is a for-profit center, and that will no longer be true,” said Vice President Lee Peterson. By WD Partners, Retail Consultant. “Thinking needs to change. Physically, it’s all about branding and online shopping. What makes me want to go to the store?”

Access to Macy’s stores requires creativity. Unlike high-profile Nordstrom, Messi is not known for his excellent fashion brands, says Ramirez. The company is trying to improve its brand by building personal branding on all its components. Oak is currently in the process of launching an eco-friendly textile and furniture line. At the time of the outbreak, Genetet said in a call that it had partnered with Toys R Us to buy a doll shop that had grown up and brought in new customers – millennial parents – who brought in a lot of toys and bought high-end items. .

While analysts are unsure of the long-term potential for building small toy stores in Macy’s stores, Macy’s stores are looking for more options to provide more places for their customers to pick up or return their orders online. Completed by Target and Walmart at the time of the outbreak, the idea of ​​using bodybuilding for carbide and other distribution efforts was so effective that even Amazon wanted it. Probably one of the reasons he planned to open his own brick and mortar store. “It makes sense why Amazon wants to open stores – they’re getting closer to their customers,” Ramirez said. It’s the last mile that everyone is fighting for.

More about the future of Macy and retail

Consumers’ demand for physical return to the store after the epidemic was a major factor in Macky’s second quarter results – net sales rose 58.7 percent year-on-year to $ 5.6 billion and proportional sales increased by 61.2 percent. Morningstar predicts a 7% job margin for 3621 sales growth by 36%, the highest in Massie since 2015. Answer.

“The idea of ​​dividing these businesses is in stark contrast to merging physical stores with dot com stores – the industry is changing seamlessly between the two businesses,” he said. “Massie’s overall strategy is to encourage and encourage both to work together to increase sales and reduce costs for transportation, supply and distribution.”

Other skeptics are questioning the long-term viability of Messi’s two commercial streams, especially in areas where some digital companies may be over-priced. “Active investors can often engage in simple financial engineering and are not thinking about shareholders but making quick money,” says James Hoop, Morata professor of ethics at Babson College. “Activist investors sometimes open wealth and sometimes destroy wealth.”

On the background of the most valuable value for digital businesses – just a few months after Sachs was split financially, Saks.com is expected to be preparing for the IPO for an estimated $ 6 billion – there is no doubt that Messi’s fast-growing e-commerce segment. Attractive for impatient investors. According to Gennette’s watch, Macy’s digital sales grew by 7.7% in 2019 and 23.7% in 2020, although investors are wary of disrupting physical sales.

The executive team is the imprint of a huge department store that will surprise investors by bringing brick-and-mortar legal entities into a business model that best serves point-com needs. But as one retailer puts it, when he came to Genet, he said, “Who has succeeded in building this pillar from a brick-and-mortar man? That is a powerful message.”

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