Macy’s Announces Sweeping Plans for a Comeback
Macy’s recently announced plans for some big changes. The first is a change to discounting practices. Its original plan of offering discounts widely was proving costly for the retailer. Now, Macy’s hopes more targeted discounting could save it millions. It is also putting handheld devices in employees’ hands and using self-checkout to revamp the checkout process. Finally, its inventory system is getting a makeover. Shares surged on the news.
Macy’s, which saw comparable same-store sales grow by just 0.2 percent in the most recent quarter, estimates more targeted discounting could yield savings of $400 million to $550 million.