Macy’s CEO Jeff Gennette: Crowds are back, merchandise is ready for vacation
Crowds are greater than a year ago in Macy’s stores as shoppers look for gifts in person again, CEO Jeff Gennette said.
On CNBC’s “Squawk Box,” the retail manager from the department store’s large location in Herald Square spoke Friday morning. All retailers’ stores opened at 6 local time.
“The first hour of business was pretty strong,” he said. “We’re really encouraged by the traffic we’re seeing and think it’s going to be a great Black Friday.”
The traffic has also been strong online. He said the retailer experienced “a major rush” on Thanksgiving Day when its stores were closed.
He said the department store took extra steps to get the goods it needed from ordering early to going to less crowded ports. He said stock levels have risen nearly 20% compared to 2020. And he said shipping cut-off dates will be later this year than last year.
“We’re not going to disappoint customers,” he said. “We’re going to have all the gifts they expect from Macy’s both online and in stores.”
– Melissa Repko
Amazon is well prepared for the hustle and bustle of the holiday season despite supply chain disasters
Amazon Fulfillment Center in Eastvale, California, Tuesday, August 31, 2021.
MediaNews Group / The Riverside Press-Enterprise via Getty Images | MediaNews Group | Getty Images
Conversations about the lack of a global supply chain have been almost constant this holiday season, with many experts urging consumers to plan and place their orders early.
Amazon is possibly one of the few retailers that ends up being isolated from supply chain shocks.
The company has a great advantage. It operates a huge network of its own aircraft, trucks, ships and last-mile vans. It also brings in 150,000 seasonal workers to help handle packages during the holiday bustle.
Amazon said last month that it had strengthened its tools to better predict what goods people want and where to go while shipping goods to various ports to avoid blockages.
Amazon spends a lot of money on making sure shoppers have a great holiday. In its most recent earnings report, Amazon said it would assume $ 4 billion in costs in the current quarter, threatening to wipe out all of its fourth-quarter profits.
– Annie Palmer
More shoppers, fewer rejections at Roosevelt Field
The number of shoppers visiting Simon Property Group’s Roosevelt Field shopping center in Garden City, New York, tops last year’s levels, says Dana Telsey, research manager and CEO at Telesey Advisory Group. However, turnout is not as large as it was in 2019, she said.
Telsey said the number of shoppers has been strong throughout the month of November, although discounts remain at 50% or below.
“I think the discount rate is lower than it had been before,” she said. “I think they take it on goods where they know they will make it up to other areas on full price sales. I think the margins have been solid.”
Telsey said she expects this trend to continue in the coming months, as supply chain issues will not be resolved until the second half of next year. Other analysts have said it could take even longer.
—Christina Cheddar Berk
Macy’s CEO Jeff Gennette said the handling of the new Covid variant is ‘too familiar’
Retail should be in focus this Black Friday as larger crowds of shoppers are expected to return to stores. Instead, the stock market is falling due to fears of a new variant of Covid-19 discovered in South Africa.
On CNBC’s “Squawk Box”, Macy’s CEO Jeff Gennette said it brings back memories of what the department store has been dealing with through the global health crisis. He said the company will follow developments closely.
“We went through alpha. We went through delta,” he said. “We’ve now got new variants … We’ve been playing with this for the last almost 20 months, and then we’re well trained for this.”
He said the retailer has tools it can use to customize, from sending online orders to customers’ doors to contactless pickup next door.
But, he added, “it’s all too familiar to us what we’re going through right now. And we’ll be ready for the next wave, whatever it is.”
– Melissa Repko
Peloton goes on sale this Black Friday
A Peloton Interactive Inc. logo on a stationary bike in the company’s showroom in Dedham, Massachusetts, USA, on Wednesday, February 3, 2021.
Adam Glanzman | Bloomberg | Getty Images
The peloton is driving a barrage of big cuts this Black Friday in hopes of luring in customers who may have held out for a bargain on connected fitness equipment.
Its Bike + is currently discounted by $ 350 plus free shipping, according to its website. Its original bike, which recently received a price reduction of around 20%, is marked with $ 150. And its treadmill costs $ 250 less than its typical listing price. Peloton has separately run a Black Friday sale for a selection of clothing on its website.
The company rarely offers deals on its fitness equipment. When that happens, they usually come around the holidays.
This holiday season, however, the Peloton is in a very different position than last time. Earlier this month, the company lowered its outlook for the full year due to declining demand for its bikes and treadmills. CEO John Foley commented that the company has “challenged visibility” in the short term. Competition from other home fitness players, such as Tonal, Lululemon-owned Mirror and Hydrow, has also intensified.
“We have witnessed several discounts in [fitness] space, while competition and reopening continue, suggesting to us that this is not where price wars end, but where they begin, “said BMO Capital Markets analyst Simeon Siegel.
– Lauren Thomas
Amazon is poised to become the big winner of the holiday season
The busiest days of the holiday shopping period, Black Friday and Cyber Monday, typically generate billions of dollars in sales to retailers.
Amazon stands to claim a significant share of Americans’ wallets during the shopping rush if trends from previous years continue. The e-commerce giant took 19% of total spending over the Black Friday weekend last year, up from 11.7% in 2019, according to data from Numerator.
The downturn in sales during the Christmas shopping period could also translate into a bump in Amazon’s overall share of the e-commerce market.
A study from 2020 conducted by Bain & Co. showed that Amazon typically gains two to three points of U.S. e-commerce share during the second half of the year, driven in part by its annual Prime Day sales held in the summer and holiday sales.
Amazon is expected to pick up 40.4% of the country’s e-commerce sales this year, according to eMarketer.
– Annie Palmer
Holiday discounts are less on offer this season
Black Friday has become synonymous with doorbusters and deep discounts in malls. But there are unlikely to be as many great deals for shoppers to choose from this holiday season, according to an analysis.
The average promotional discount for the week ending November 21 was 33.4% compared to an average discount of around 37% just two months earlier, according to data from Refinitiv and StyleSage. The year-to-date average was slightly higher, at 38.2%, the duo found in their survey of holiday deals.
“This is primarily due to supply concerns … which have really limited inventory levels for retailers,” said Jharonne Martis, retail analyst at Refinitiv. “It is combined with a very large demand from consumers, and it sets [retailers] in a very unique and strong position to cut down on the aggressive discounts we’ve seen in previous Black Fridays. “
– Lauren Thomas
A record number of American consumers are out during the holiday season
Predictions for holiday retail sales are rosy, with the National Retail Federation calling for historic gains of 8.5% to 10.5% from the level the year before. But growth is largely driven by a wealthy fraction of consumers, while a record number of people do not partake in gifts.
This holiday season, 11.5% of people plan to sit out during the season by not spending anything on gifts, gift cards or other things to entertain, according to a Deloitte survey. It marks a record number of Americans on the sidelines as long as the consulting firm has followed suit.
High-income households plan to spend five times as much as lower-income households this holiday season, Deloitte found. The consulting firm asked 4,315 consumers about their holiday shopping plans between September 7 and September 14.
“This story of two vacations is a pretty good reflection of the story of two pandemics,” said Stephen Rogers, CEO of Deloitte’s consumer industry division. “What starts as a health crisis turns into a financial crisis if you are on a lower income [bracket]. “
Households bringing in more than $ 100,000 a year will pay out $ 2,624 each this holiday, a 15% increase from 2020, Deloitte’s study showed. While households earning less than $ 50,000 a year plan to spend $ 536 per year. household, it is a decrease of 22% from the level a year ago.
– Lauren Thomas
Black Friday will once again be a big event as the stores close for Thanksgiving
Ariel Skelley | Getty Images
Black Friday has once again become the main event for shoppers eager to kick off the holiday season by visiting the mall or store.
For years, retailers tried to push for the start of the gift hunt. Instead of welcoming people on Black Friday morning, companies began opening their doors immediately after some families finished their turkey dinners on Thanksgiving Day.
However, the pandemic shook up this dynamic – and has put Black Friday back in the spotlight. Many retailers, including Walmart, Target and Best Buy, chose to keep stores closed last Thanksgiving. They repeated it again this year. Target went a step further and announced this week that its stores will be closed on Thanksgiving Day forever.
For retailers, some of the decision is practical: Shoppers have learned that they can skip the hassle of queues and crowds, but still tick items on the gift list.
“What started as a pandemic-driven temporary measure is now our new standard – one that recognizes our ability to meet our guests’ holiday needs both within and far beyond store opening hours,” Target CEO Brian Cornell wrote in a note. to the employees.
– Melissa Repko
Stores are making a comeback this holiday season
One of the big changes this holiday season? Shoppers want to hit the stores again.
That’s a big change from last year, when more consumers chose to pick up next door or get packages dropped off at the door due to fears of getting Covid-19.
Half of U.S. consumers said they plan to take more trips to stores to shop for gifts this year, according to a survey of 1,005 people from Sept. 24 to Sept. 26 by the ICSC, an industry association representing the mall industry. Last year, 45% said they planned to visit malls.
It is also expected to play on Black Friday. On the shopping holiday, 64% said they expect to go to the stores to shop, up from 51% last year, according to the National Retail Federation. The retail group worked with Prosper Insights & Analytics to ask 7,837 adults from 1-10. November on their plans and progress.
For some consumers, returning to the stores is a way to get gift ideas, feel festive and resume old traditions. For others, the decision is practical. In a year of supply chain problems, people may feel more at ease from having a desired item in hand – or the ability to search for a solid replacement.
– Melissa Repko