Macys CEO Lundgren on Amazon, Value
Macy's has been one of the great retail success stories of the last decade, but particularly since the GFC and the rise of online retail.

With 800 stores under the Macy's and Bloomingdale's brands, CEO Terry Lundgren has driven Macy's share price to 450% up on 2008, four times the S&P500 index. And, probably a linked metric, Macy's is now the 10th largest internet retailer by revenue after Netflix.

In an interview with Buzzfeed, Lundgren gave insight into what he sees in store for retail in the future. Though some of the points were specific to the US market the following were of general interest:

Millennial consumers: Value is all important. "We're not seeing a big run-up in bad debt or heavy debt from young people. We are seeing people buying value prices."

Shopping malls: They are working with the major mall owners to determine what the mall of the future will be. "what can we do about this next group of shopping centers? How can we make them more exciting? There are some that we need to just tear down and start over, and there are some [where] we need to open up the ceilings and create a different kind of atmosphere."

Amazon: While 5 years ago, Lundgren would have responded that he was concerned about the threat Amazon posed to his group, what he has come to appreciate is that the stores he has are a huge advantage for 2 reasons:

Firstly, all his stores are or will be fulfilment stores as against 84 fulfillment stores for Amazon.

Secondly "the research says people still prefer to...go in and touch the product. That personal touch is going to be very hard to replace electronically."

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