Macy’s online shoppers see a big drop in prices on their purchases
Posted On July 18, 2021
Macy’s shoppers who purchased online from the online retailer on Friday saw a big decline in prices, despite a strong rebound in sales from the retailer’s online store, according to a study by the retailing giant.
Macy’s, one of the nation’s largest department stores, reported a decline in total merchandise sales of 5.3% in the quarter ended July 31, to $2.6 billion.
The company posted a profit of $5.6 million, or $2 per share.
Marianne P. Scholz, president of the National Retail Federation, said the findings reflect consumers’ frustration with a lack of quality merchandise online.
“While consumers may not always be able to get what they want at home, they can often get great value online,” Schollz said in a statement.
“When they buy online, they get a better experience and a better shopping experience.
This is especially important in an era of online shopping where shoppers are often faced with higher-priced merchandise online.”
Macy has seen strong growth in online sales, which accounted for 22% of total sales for the quarter.
However, online sales fell by 5.6% in July, to just under $1 billion, compared with a gain of 6.6%, during the previous quarter.
The company reported sales in its online store fell 9.4% from the prior quarter, but the company said sales in the online shopping section of its website were up 3.6%.
Sales for its online business dropped 6.2% in June from a year earlier, according the company.
Macy’s said it sold 4.5 million items online in the fourth quarter.
In the U.S., Macy’s is one of three U.s. retailers to report quarterly sales declines.
Target said its sales dropped 5.7% in its latest quarterly earnings report.
The Macy’s results came just a day after Target reported a 7% decline in the company’s online business.
In a blog post, a spokesperson for Macy’s, a division of Macy’s Inc., said the retailer is not looking for any further explanations.
“Macy is a brand that has been synonymous with quality and affordability, and we continue to believe in the value that consumers bring to the retailer,” the spokesperson said.