Macy’s Inc. reported Feb. 27 that digital sales decreased year over year in its fiscal Q4 ended Feb. 3. In-store sales were roughly flat compared to Q4 2022. Macy’s digital and in-store sales for the full 2023 fiscal year both decreased.

For Q4 2023, Macy’s reported $8.12 billion in net sales. That’s a 1.7% decrease versus $8.26 billion in the prior-year’s comparable period. Meanwhile, Macy’s full-year net sales decreased to $23.09 billion in 2023. That marks a 5.5% decrease from $24.44 billion in its fiscal 2022.

As a result, the retailer announced that it will be closing 150 “unproductive” locations by the end of 2026, including 50 by the end of the fiscal year.

“In fiscal 2023, they represented about 25% of Macy’s, Inc.’s gross square footage but less than 10% of its sales,” CEO Tony Spring said in a Feb. 27 earnings call with investors.

Spring became Macy’s new CEO on Feb. 4, replacing now-retired predecessor Jeff Gennette. The company said Spring’s focus during the past year has been on Macy’s, Inc.’s digital, customer, merchandising and brand teams, in addition to Bloomingdale’s and Bluemercury.

Macy’s is No. 17 in the Top 1000, where Digital Commerce 360 categorizes it as an Apparel/Accessories retailer. The Digital Commerce 360 database ranks North America’s largest online retailers by their annual web sales.

Macy’s digital — and in-store — sales struggle

In Q4, Macy’s digital sales decreased 4%. Meanwhile, brick-and-mortar sales were “roughly flat” year over year, the retailer said.

Macy’s digital sales for fiscal 2023 fell 7% year over year. Similarly, brick-and-mortar sales decreased in fiscal 2023 as well, down 5% year over year.

“As we look across our omnichannel enterprise, we are taking a balanced portfolio approach to establish the right mix of on- and off-mall Macy’s, Bloomingdale’s and Bluemercury stores in the best locations and markets,” Spring said.

Customers “want an omnichannel shopping environment that’s neat, easy and convenient,” he said. They also want an updated selection of relevant trending products, clarity on value and pricing, and a greater availability of employees to help find products and complete purchases, he added.

Sales at Macy’s subsidiaries

Bloomingdale’s net sales increased 3.5% year over year in Q4. Comparable sales, on the other hand, decreased 1.6%.

Meanwhile, Bluemercury posted its 12th consecutive quarter of comparable sales growth. Its net sales grew 7.8% and comparable sales 2.3% year over year.

Bloomingdale’s has a strong digital presence, Spring said.

“Currently, about 80% of Bloomingdale’s digital sales are in markets where we have physical stores,” he added. “We believe that entering new markets should only benefit the digital business further.”

Macy’s operated 33 Bloomingdale’s locations and 159 Bluemercury locations at the end of its fiscal 2023.

Macy’s in the news

In January, Macy’s laid off 2,350 members of its corporate staff. That’s 13% of its corporate staff, and 3.5% of its overall workforce, excluding seasonal workers.

Macy’s had reported net sales declined 7% to $5 billion in its fiscal third quarter ended Oct. 28. Digital sales and brick-and-mortar sales declined at the same rate.

Also in January, Macy’s rejected a takeover offer from Arkhouse Management that would have taken the retailer private for $5.8 billion. A month later, Macy’s confirmed that it received nominations of nine individuals to its board from the investment firm, showing that Arkhouse’s efforts are ongoing.

Macy’s earnings

For its fiscal fourth quarter ended Feb. 3, 2024, Macy’s reported:

• Net sales declined 1.7% year over year to $8.12 billion.
• Comparable sales decreased 5.4%.
• Macy’s digital sales decreased 4% year over year.
• Brick-and-mortar sales were roughly flat versus Q4 2022.

For its fiscal year ended Feb. 3, 2024, Macy’s reported:

• Net sales declined 5.5% to $23.09 billion.
• Comparable sales decreased 6.9%.
• Macy’s digital sales decreased 7% year over year.
• Brick-and-mortar sales decreased 5% versus 2022.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. 

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