Will Apple bring Macy’s a merry Christmas?
Struggling Macy’s is looking for any way it can to put its traffic and sales trends on a positive track heading into the critical Christmas selling season. Has it found an answer in a new partnership with tech giant Apple?
Jeff Gennette, president and CEO-designate for Macy’s, Inc., told analysts yesterday that it has signed a deal with Apple to open one of its customer magnet stores inside the department store’s iconic Herald Square flagship location in New York City. The new Apple (they don’t call them stores anymore) will be the first the tech giant has opened inside a department store in the U.S.
In addition to the Herald Square news, Mr. Gennette said Macy’s will also begin selling the Apple Watch at 180 of its top stores heading into the holiday season. Apple unveiled its second generation smartwatch earlier this week. The new water-resistant (not waterproof) Apple Watch Series 2 features built-in GPS, a dual-core processor and a brighter display than the first model.
The Apple deal is not the first time that Macy’s has turned to consumer electronics to help provide a boost for its business. Last year, the retailer reached a deal with Best Buy to open 10 shops inside Macy’s locations in time for the 2015 Christmas season. Mr. Gennette has pointed to store-within-a-store concepts as one of his strategies for sparking a rebound at Macy’s.
Last month, Macy’s announced plans to close 100 of its 728 department stores. Mr. Gennette positioned the move, at the time, “as an advancement in our thinking on the role of stores, the quality of the shopping experience we will deliver, and how and where we reinvest in our business for growth.”
- This Macy’s plan to boost sales doesn’t have anything to do with clothing – CNBC
- Macy’s Just Signed a Major Deal with Apple – Fortune
- Introducing Series 2 – Apple
- Are store closings a positive sign for Macy’s? – RetailWire
- Best Buy to open shops inside of Macy’s – RetailWire
DISCUSSION QUESTIONS: Do you see store-within-a-store concepts as a promising strategy for Macy’s to lift its sales? What is your reaction to the department store’s deal with Apple?