Will Macy’s curated marketplace distinguish it from online rivals?
Macy’s plans to launch a curated online marketplace that will recruit “carefully selected” third parties to sell their products on macys.com and bloomingdales.com. The platform will launch in the second half of 2022.
Jeff Gennette, chairman and chief executive officer of Macy’s Inc., speaking yesterday on the company’s third quarter earnings call said the new platform will connect third-party merchants with the chain’s customers “in a scalable way.” He said that the addition of the third parties will give customers access to an “even greater breadth of assortment of exciting products to deliver on our promise of style and curation.”
“Our digital business is on track to generate $10 billion in sales by 2023 and that figure does not include the incremental revenue we expect this new marketplace platform to generate,” he added.
The retailer expects the addition of select merchants to its platform will enable it to react more quickly to new product trends and drive profitable sales without taking on additional inventory.
Mr. Gennette called the marketplace “the next natural step in our evolution as a digitally led omnichannel retailer.” He added that Macy’s is the second largest online retailer in its category and that “we have a lot of competition” from players that have their own marketplaces.
Macy’s is partnering with Mirakl for its platform.
The retailer reported that same-store sales during the third quarter increased 8.7 percent, an improvement over the 5.9 percent gain it posted in the second quarter. Earnings per share were well above what it did during the same quarter in 2019 and gross margins improved by around 100 basis points.
Mr. Gennette expressed confidence that the retailer would have a strong fourth quarter and that it had sufficient inventory to meet the needs of customers during the holiday season. It’s an effort, he said, that began in 2020.
“Our teams activated plans to mitigate bottlenecks and since then stayed agile and flexible, leveraging our strong networks and relationships with international carriers and variants and diversifying how we move product both up and downstream,” he said.
- Macy’s, Inc. Announces Plans to Launch Curated Digital Marketplace – Macy’s, Inc.
- Macy’s, Inc (M) Q3 2021 Earnings Call Transcript – The Motley Fool
DISCUSSION QUESTIONS: Do you expect Macy’s to have success with its digital marketplace? What do you see as Macy’s current strengths and weaknesses as a “digitally led omnichannel retailer”?