Incoming Macy’s CEO Tony Spring and current CEO Jeff Gennette told CNBC’s Jim Cramer the company is leaning into the success of its brands like higher-end department store Bloomingdale’s and luxury beauty retailer Bluemercury.
Spring, who will take over for Gennette in February after his retirement, had been at the helm of Bloomingdale’s since 2014.
“It’s all about curation of product and the delivery of a better experience for the customer. Retail is theater,” Spring said. “So Bloomingdales is our growth vehicle. That doesn’t come at the exception of Macy’s. Because we’re talking to different customers, and we obviously can learn from one another without becoming one another.”
Macy’s announced Tuesday it would be expanding its “small-format store strategy,” planning to increase the number of smaller Macy’s and Bloomingdale’s locations across the country. Spring said the company’s smaller divisions of Bloomingdales — known as “Bloomie’s” — have been successful.
Gennette and Spring also claimed Macy’s has an edge when it comes to holiday retail. Gennette said beauty and gift giving are a huge part of their strategy during the holiday season, accounting for more than 40% of the the company’s brand sales during the fourth quarter.
“We are more penetrated as a holiday destination than other retailers, and so this is something that we start the moment we finish holiday of ’22, we started on ’23.” Gennette said. “I feel very good about our Christmas strategies.”
