Every year at this time, Macy’s (M) is the center of Thanksgiving attention, thanks to its iconic N.Y.C. parade. This year, as huge inflated Charlie Browns and Elmos make their way down Broadway, the company is also welcoming a parade of new customers thanks to a growing business footprint in China.
This month, Macy’s made business headlines after its sales declined 5.2% (which was worse than analyst predictions). The department store chain recently launched a new off-price retail chain, Macy’s Backstage, as a competitor to popular chains such as T.J. Maxx and Marshalls, but its effect on the parent company’s bottom line will not be known for some time
Hope from China?
One of the biggest initiatives for Macy’s has been its partnership with Victor Fung, the honorary chairman of Li & Fung Ltd., which allows Macy’s to sell products online in China. The company enjoyed some success with its sales during November 11th’s Singles Day in China, and Macy’s chairman, Terry Lundgren, recently appeared on Bloomberg.com to share his thoughts about what Chinese consumers are looking for from Macy’s:
No miracle yet
So, even as Macy’s provides its new consumers in China with high thread-count sheets, and 5 new Backstage stores open in the U.S., some investors wonder if the company can increase sales (with most analysts not expecting a new “Miracle on 34th Street”). Macy’s is aggressively promoting its Black Friday offerings, and by next week there may be more data to determine if Macy’s should be in your portfolio now.
In the meantime, it is guaranteed that Macy’s and its associates will dazzle New York City crowds (and, of course, the Today Show’s Al Roker) with floats, marching bands and inflated cartoon characters in tomorrow morning’s Macy’s Thanksgiving Day parade.
Black Friday is just around the corner
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