Macy’s has raised its expectations for online retail growth to 5% from 1.4%, citing “ongoing momentum” in the retail industry.
Macy’s Chief Executive Officer Kevin Johnson said the company would continue to invest in its online store and continue to focus on growing its brick and mortar stores, while also taking advantage of technology to better serve its customers.
The company plans to expand its online business by 30% by 2019, while building its brick-and-mortar stores to meet demand, Johnson said in a statement.
“Our goal is to grow at a pace that will allow us to achieve this growth with the full attention of our management team,” Johnson said.
Marilyn’s plans to grow its online retail business to 5 percent from 1% in 2019.
(AP: Michael Nagle)Macy said it will invest in new technology to help customers find items online.
The company said it plans to invest $300 million over the next two years in online learning, technology and other initiatives.
Johnson said Macy’s online business was “doing well” and its online sales grew by 5% year-over-year last year, and by 7% year over year.
He said the online business is the “safest” part of Macy’s business.
“We are making investments to continue to grow and we’re doing it through digital and other channels,” Johnson told analysts.
“I think there is a lot of opportunity for our online business to continue its growth,” he said.
“It’s a lot more efficient to do that than it is to get the store to go through a traditional brick- and-mortal store.”
If we’re going to grow our online, it has to be in a way that we’re growing it in a sustainable way.