Incoming Macy’s CEO calls Bloomingdale’s brand a ‘growth vehicle’ for the company
Incoming Macy’s CEO Tony Spring and current CEO Jeff Gennette told CNBC’s Jim Cramer the company is leaning into the success of its brands like higher-end department store Bloomingdale’s and luxury beauty retailer Bluemercury.
“It’s all about curation of product and the delivery of a better experience for the customer. Retail is theater,” Spring said. “So Bloomingdale’s is our growth vehicle. That doesn’t come at the exception of Macy’s. Because we’re talking to different customers, and we obviously can learn from one another without becoming one another.”
Macy’s announced Tuesday it would be expanding its “small-format store strategy,” planning to increase the number of smaller Macy’s and Bloomingdale’s locations across the country. Spring said the company’s smaller divisions of Bloomingdale’s — known as “Bloomie’s” — have been successful.
Gennette and Spring also claimed Macy’s has an edge on its rivals when it comes to holiday retail. Gennette said beauty and gift-giving are a huge part of their strategy during the holiday season, accounting for more than 40% of the company’s brand sales during the fourth quarter.
“We are more penetrated as a holiday destination than other retailers, and so this is something that we start the moment we finish holiday of ’22, we started on ’23.” Gennette said. “I feel very good about our Christmas strategies.”