Macy’s (M) 27th Annual ICR Conference 2025 summary

Strategic objectives and progress

• Focused on strengthening the Macy's nameplate by closing underperforming stores, improving merchandise assortment, and enhancing customer experience through the First 50 store program, expanding to 125 stores next year.

• Accelerating growth at Bloomingdale's and Bluemercury, with Bloomingdale's expanding its brand and store formats and Bluemercury celebrating 15 consecutive quarters of growth and expanding into new categories and geographies.

• Improving end-to-end operations by simplifying processes, outsourcing, automating, and leveraging predictive analytics to drive cost savings and operational effectiveness.

• Customer experience enhancements include more consistent in-store and online experiences, increased staff presence, better inventory management, and storytelling to differentiate from competitors.

• Net Promoter Scores and customer satisfaction have improved in pilot stores, with positive comp sales in mall-based locations and plans to scale successful initiatives chainwide.

Operational and financial performance

• Automation in fulfillment centers has improved delivery speed, with a 10 percentage point increase in orders delivered within five days and lower costs per package.

• In-stock rates for replenishment items have improved by 10 percentage points year-over-year, reducing customer disappointment and supporting sales.

• Inventory management focuses on minimizing aged inventory, introducing new brands, and aligning supply with demand by channel, store, and product attributes.

• Holiday season performance showed continued improvement in same-store sales, with the company meeting earnings guidance and preparing for growth in 2025.

• Capital spending has decreased from $1.3 billion in 2022 to a forecasted $895 million in 2024, shifting from investment to a harvest phase to realize returns on prior investments.

Market outlook and future plans

• Upper-end consumers remain healthy, while lower and middle-tier customers face ongoing economic pressures; the company aims to control its destiny by focusing on opportunities and not using macro conditions as excuses.

• Plans to expand Bloomingdale's with more small-format and outlet stores, and Bluemercury into new geographies and categories, leveraging strong service experiences across all brands.

• Emphasis on cultural transformation, agility in merchandising, and introducing new brands and ideas each season to maintain relevance and drive growth.

• Inventory and capital allocation strategies are designed to support profitable growth, with a focus on working capital opportunities and balanced capital distribution.

• Entering 2025 with a stronger position, especially for Bloomingdale's and Bluemercury, and a more robust Macy's brand through expanded reimagined store programs and digital growth.