Macy’s Announces First Quarter Sales Drop

Macy's Inc. (Cincinnati) reported sales in the first quarter totaled $5.7 billion, a decrease of 2.9 percent compared to sales of $5.9 billion in the same period last year. On a same-store basis, the department store retailer’s first quarter sales dropped 2.6 percent. During the first quarter of 2008, the company opened a new Macy's store in Westminster, Colo., and closed a store in Memphis, Tenn., and a furniture store in Richmond, Va.

“Given the very difficult economic environment, our company performed relatively well compared to the competition in the first quarter,” says Terry Lundgren, Macy's Inc. chairman, president and ceo. “Macy's same-store sales for the quarter, while below last year, were significantly better than most of our largest competitors, continuing a trend from the fourth quarter of 2007. We appear to be capturing market share even in this period of weak consumer spending.

“We are running the business with discipline given the weakened level of consumer confidence, as demonstrated by inventory levels at the end of the quarter that were about 4 percent below a year ago,” says Lundgren. “And as we begin implementation of new My Macy's localization initiatives across the country, we are optimistic that our plans for tailored assortments and an improved shopping experience in every location will further enhance our store-level execution.”

Macy's also announced plans to open a new store in fall 2009 at The Shops at Summerlin Centre in west Las Vegas. This will be the retailer’s fifth store in the Las Vegas area, and operated by Macy’s West division (San Francisco). The open-air regional center will be located near the recently completed western portion of the Las Vegas beltway. At two-levels, the 180,000 square feet store will feature a full range of apparel and accessories for men, women and children, as well as merchandise for the home.

The company also plans to open three new Macy's stores in the Phoenix market within the next two years. In April 2009, a 120,000 square-foot, one-level store will open at SanTan Village in Gilbert, Ariz., followed in 2010 by a 120,000 square-foot store at Estrella Falls in Goodyear, Ariz., and a 150,000 square-foot location at CityNorth in the Northeast Valley of Phoenix.

Each of the new locations will offer apparel and accessories for the family, along with selected merchandise for the home. The stores will be designed specifically for the open-air, lifestyle-center concept including a new “main street” entrance configuration and an emphasis on natural lighting via skylights and exterior windows.

Macy's Inc. operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's.