Macy’s chief sees strong start to holidays

Bloomberg

Macy’s Inc. CEO Jeff Gennette says the holiday season is off to a strong start, helped by a surge in outerwear sales.
The retailer had sold 200,000 coats during Black Friday morning itself, Gennette said in an interview.
And he expects to ring up a million coats, sweaters and fleeces during the long weekend.
The outlook suggests that Macy’s and other retailers are getting help from Mother Nature this year. Chilly weather hit much of the eastern US during this time, creating prime conditions for apparel shopping.
Macy’s and other department stores hope this holiday season marks an inflection point in their comeback efforts. The industry has suffered from same-store sales declines, sluggish foot traffic and the rise of
Amazon.com Inc. Even facing challenges, Gennette sees an advantage in being a brick-and-mortar retailer
during the holidays.
“Customers today want to go to a store—the sights, the smells, the sounds,” he said. “How you can create that in a department store is a unique opportunity that we have.”
Macy’s downturn prompted the company to target 100 of its locations for closure. Last year, it also announced that it would team up with Brookfield Asset Management to redevelop 50 stores.
The store closings have left Macy’s real estate portfolio in stronger shape, Gennette said. The company has 250 stores in “premium” malls, which will remain attractive, he said.
Its Manhattan location in Herald Square, touted as the world’s largest store, has been valued at as much as $4 billion. Gennette called it testing ground for new concepts.