The most-awaited festive season has kicked off and retailers are on their toes to make the most. The COVID-19 pandemic has shaken the economy and this year, the holiday season is somewhat unprecedented. However, this pandemic didn’t dent consumers’ shopping fervor much. Retailers are coming up with innovative offers and strategies to make the most of the event. Also, they are quite focused on digital endeavors with contactless curbside pickup and expedite delivery services. Likewise, Macy’s, Inc. M has been doing a lot more to enhance customers’ shopping experience this holiday.
The department store retailer recently unveiled unique gift items across all price points. Shoppers can avail these on macys.com, mobile app or in stores throughout the nation. Also, consumers can get these gifts via same-day delivery through DoorDash, now $5 through Dec 23, and curbside pickup through Dec 24. The company’s outlets adhere to enhanced safety protocols, including additional cleaning, occupancy checks, to manage crowds and sanitation stations.
Macy’s offers include toys, beauty box with a monthly subscription, wine cellar, gift cards and more. Also, guests can gift specialty curated subscription offerings. Moreover, they have free virtual consultations, wherein personal stylists will give advice on holiday outfit and last-minute gifts.
We note that Macy’s earlier actions include collaboration with Swedish buy now, pay later group Klarna. This enables the company offer financial ease and payment flexibility while shopping online. Here, shoppers can choose to pay in four equal and interest-free installments at the online checkout. Macy’s tie-up with DoorDash for expediting delivery service is impressive too.
The company’s sustained focus on price optimization, inventory management, merchandise planning and private label offering are the primary catalysts facilitating in meeting customer-oriented demand. Going ahead, management is on track with boosting assortments as well as customers’ shopping experience in stores and online.
Meanwhile, Macy’s three-year Polaris Strategy to adapt better to the new retail ecosystem is quite encouraging. This includes strengthening customer relationships, expansion of assortments, accelerate digital growth, optimizing store portfolio and reducing costs. The company plans to continue investing in its digital platform, which is likely to fuel growth. During the third quarter of fiscal 2020, company’s digital sales have surged 27% from the year-ago quarter’s figure and contributed 38% to total-owned comparable sales. The Zacks Rank #3 (Hold) company’s shares surged 56.6% in the past three months compared with the industry’s 54.1% rally.
Key Picks in Retail
Tapestry TPR has a long-term earnings-growth rate of 10% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
L Brands LB, also a Zacks Rank #1 stock, has a long-term earnings-growth rate of 13%.
Target TGT has an expected long-term earnings growth rate of 8.5% and currently flaunts a Zacks Rank #2.
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