Michael DeLellis

Today, we announced our first-quarter earnings which show the positive traction of our “A Bold New Chapter” strategy. The hard work and dedication of our colleagues helped us deliver a solid first quarter. Here are the key takeaways: ◾Our First 50 Macy’s locations, which serve as test stores for merchandise, visual and staffing initiatives, showed that when we provide our customers with the right product, experience and value, we deliver sales growth. The Macy’s team is focused on newness in market brands and the reimagination of our Private Brand portfolio.  ◾Bloomingdale's and Bluemercury continued to foster brand love and loyalty.   ◽ Exciting to see the growth at Bloomingdale’s in advanced contemporary. The DNA of this brand gives it the ability to compete for share of wallet across a range of categories. Expansion of Bloomie’s and Outlet stores continues with three new stores this year.  ◽ Bluemercury achieved its 13th consecutive quarter of sales growth, driven by continued strength in skincare and expansion of key brand partners. Our plans to open at least 30 new locations and remodel roughly 30 locations are underway, with one new location and three remodels slated for the second quarter. Read our full earnings results below.

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Highlights from last week's NYC #RetailSafari -- focus was the intersection of #technology, #customers, and #operations, primarily in specialty apparel and fashion. Key themes: 1. Technology goes backstage – Brand new formats / concepts at H&M, Banana Republic, Zara, AMERICAN EAGLE OUTFITTERS INC., lululemon, and J.Crew and none come across as tech-forward w/ regard to customers. On the other hand, associates were all mobile enabled and doing most of their work leveraging phones / tablets. 2. Old tech; new tricks – Widespread use of #RFID and #QR codes (both generally on the price ticket), with a mix of internal and external use cases -- self-checkout, RFID-assisted full-service checkout, inventory counts, inventory finding, #BOPIS, etc. 3. Apps are an entry point – #Retailers without a clienteling / selling culture are using apps to drive customer capture. #Lulu uses app-based membership to enable exchanges on sale items; UNIQLO offers special discounts to app members. 4. Unified is still a unicorn – Despite a decade of focus on #omnichannel and unified commerce, many gaps exist. Very few #retail apps recognize when you’re in store, send a notification, and/or assist in the shopping experience. Many didn’t even have their newest stores listed as an option for #BOPIS (despite in-store signage).  5. Video is the new visual – ultra-large format (8-10ft x 12-16ft) video screens were a common feature of many new stores, and really helped to bring the brand lifestyle to life.  6. It’s hard to (re)teach people how to shop – Across all stores except Bonobos, Glossier, Inc., and Reformation, the shopping process is the same as it’s been for the past 50+ years. The ones that don't are focused on a niche customer with a unique product offering. IMO, the product is the driver and consumers "accept" the experience. 7. The "future" is not here yet, but you can start to see the shape of it – Demoing the Apple #VisionPro, we could think of multiple use cases (mostly internal / operational), and while it’s too early (and too expensive) to fully commit, it’s certainly worth considering a pilot as part of an #innovation lab. It's also worth noting there was no apparent use of #AI by customers or associates. Curious to hear comments, feedback from other markets. #ibmretail

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Since 2019, Kohl's sales have shrunk by $2.3 billion. That’s a pretty terrible number given consumer spending on retail rose by a dramatic $1.3 trillion over the same period.     The Kohl’s losses are a combination of existing customers spending less and the complete defection of some shoppers. Over the past five years, Kohl’s has lost 1.3 million customers: people who used to visit Kohl’s, but now they don’t. Most of these folks still buy things so it’s interesting to see where they’re now shopping, or shopping more at, instead of Kohl’s. The diagram below traces the defections. The most notable thing is the gains being made by off-price retailers. TJX – with its TJMaxx, Marshalls, and HomeGoods banners – is picking up a lot of trade. Ross, Nordstrom Rack, and Burlington are also in the mix. It’s no wonder off-price is doing so well when it’s gaining so many customers from chains like Kohl’s. What’s also notable is that online specialists don’t dominate. Amazon has picked up some trade, as has Wayfair, but neither are the main beneficiaries of Kohl’s woes. This underscores that the very simplistic narrative of ‘online killed…” is often far from the truth. It is also significant that Costco makes an appearance. Costco is a silent assassin. Many retailers don’t have it on the radar for non-food; but the reality is that Costco has a formidable non-food business. Retailers like Kohl’s don’t underperform because one large enemy comes in and swoops away all the custom. Their substantial loss of trade comes from many players nibbling away at their sales and market share. #retail #retailnews #departmentstores #wholesale #shoppers

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Victoria’s Secret & Co. has been on the decline for the last few years. Reviving the fashion show may be grasping at straws but I think this could be exactly the thing that puts VS back on the map. 🙋🏽‍♀️Customers are craving reasons to engage with a brand, online and offline. Victoria Secret could offer exactly this if they lure customers into the stores with activations, promotions, and interesting experiences. 🔹They could also get it very wrong but either way, they will get the customers talking. Low sales, low engagement, decrease in brand loyalty etc. - time will tell. 🦋Net sales peaked in 2016 with another jump in revenue before the pandemic. Many will disagree with bringing back this dated view of looking at scantily clad women in wings on the runway but I beg to differ. The consumer has evolved and there may be a new VS customer on the horizon. 👙With weight loss injections flooding the market and retailers struggling with excess inventory, the lingerie and swim world could be categories that will save retail brands. With more women trading in cover ups for bikinis, there will be a new customer empowered with body positivity. This customer could save Victoria Secret from extinction. Thanks Nicole Kirichanskaya and Inside Retail US for including my POV. Shoutout to Marie Driscoll, CFA also quoted in this discussion. Find the link to the full article in the comments. #retail #retailnews #victoriasecret #TRE #TopRetailExpert #TheMerchantLife #stores #fashion

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According to GlobalData, the U.S. secondhand apparel market grew 11%, or seven times faster than the broader retail apparel market, to $43 billion last year. The report estimates that resale sales online and at traditional thrift stores could reach $73 billion by 2028. #resale #retail #apparel #retailsales

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Will Kohl's benefit from its latest third-party venture with Babies"R"Us? On the plus side, adding Babies R Us is more of a help than a hinderance to Kohl's. It bolsters the proposition in an important area of the market and gives Kohl’s more credibility in the space. This should help drive some incremental revenue into the business. There is also a view that if Kohl’s can pull in younger family and family formation shoppers for baby products it can, hopefully, convert them into buying other categories like toys or homewares.    However, for this to work properly, Kohl’s really needs to improve the look and feel of its stores and make its own assortments and pricing more compelling. If it fails to tackle these things, this will be a reasonable venture but one that cannot throw a halo over the rest of the business – much as has been the case with Sephora.   The bottom line is that Kohl’s can add in as many third-party brands and ventures as it wants, but there is a tactic admission here that its own core proposition isn’t good enough. It still needs to work to dispel this view. Great to chat with Inside Retail US about this, link to article in comments. #retail #retailnews #departmentstores #babies #parents

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Here at Ulta Beauty, we believe that beauty is a force for good, for all. So in a world where beauty standards are always changing, our brand new Ulta Beauty study revealed and confimred that every generation shares a deep emotional connection to beauty starting as early as Gen Alpha that is deeply rooted in self care and joy! Introducing our “Generation Joy: Defined by Beauty Enthusiasts of All Ages, United by Joy” report, uncovering a new generation of beauty enthusiasts who are bonded by beauty and united by JOY. We dug deep to discover how consumers across generations, including #GenAlpha, perceive, experience, and are influenced by beauty – and how joy is at the heart of beauty rituals, no matter your age. Among the topline “Generation Joy” insights: ✨Universal Joy from Beauty Routines: All generations look to self-care to increase joy in their lives - with 77% agreeing that maintaining a beauty or wellness routine helps them feel more joyful on a day-to-day basis. ✨Early Beauty Experimentation: Gen Alpha females and males are starting to experiment with beauty products at an average age of 8, five years earlier than Gen Z females. ✨Holistic Beauty Definition: 91% of Gen Alpha believes beauty is about looking and feeling good beyond physical appearance, with a focus on holistic self-care. ✨Parental Guidance: 77% of Ulta Beauty Rewards members who are parents to Gen Alpha actively encourage their child’s interest in beauty, with 70% using beauty routines as a bonding activity. And over two-thirds of these Gen Alpha parents agree that it is healthy and “normal” for their child to want to explore beauty at their age. ✨Natural Preferences: 92% of Gen Alpha prefers a more natural look, 87% prioritize skincare over makeup, and 97% believe skincare is self-care, reflecting their beauty goals – cleanliness, hydration, and enhancing natural beauty. Check out the report to explore how joy and beauty unite us! 👇🏻 https://lnkd.in/gSFpqYXu #UltaBeauty #TheJoyProject #JoyForward

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Thank you, Fiona, for sharing this interview. It was an honor to discuss the critical role leadership plays in strengthening cybersecurity within the retail sector. Addressing unique challenges and adapting our strategies to effectively prevent fraud is imperative in our industry. I hope this conversation provides valuable insights to everyone in the hashtag #CyberEdBoard and beyond. I encourage all my peers and colleagues to watch the full interview and join the discussion on how we can collectively enhance our cybersecurity measures. #Cybersecurity #Retail #Leadership #CISO

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Retail design always is a meaningful part of the #retail experience, and I enjoyed sharing my insight with National Jeweler on how design is impacting store design and consumer engagement alike. What are your thoughts on how merchandising + design impact stores… jewelry focused like discussed here or any category of retail?

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Ever wonder why some brands can charge a premium while others get commoditized? Our new Blueprint for Brand Growth report sheds light on just that. Our analysis of 6.5 billion attitudinal and shopper data points found that brands that reach “meaningfully different” status, addressing a spectrum of practical and emotional needs in unique ways that competitors don't, have much greater pricing power, higher brand equity and much faster growth. Learn more about how brands can extend their identity and become more differentiated in this @MediaPost article: https://lnkd.in/ezS3XkQN

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Here are some interesting stories from the world of retail for Thursday, June 6: 🧘🏽‍♀️ lululemon beat Wall Street’s earnings and revenue estimates, but issued weak second-quarter guidance as it contends with a slowdown in the Americas, its largest market. 👕 Hanesbrands Inc. will sell Champion to Authentic Brands Group in a deal worth up to $1.5 billion with performance incentives. Authentic owns brands such as Reebok, Forever 21 and Quiksilver. 5️⃣ Five Below cut its outlook for the year, warning that its core low-income shoppers were facing an outsized impact from years of inflationary pressures. It posted an unexpected decline in same-store sales for the first quarter. 👙 Victoria’s Secret & Co. said it was encouraged by demand for its bras, sleepwear and other clothing in May, but the company said it was exercising restraint amid continued caution more broadly among the US consumer. 🏪 Foxtrot intends to reopen several locations in Chicago in the Gold Coast and Old Town neighborhoods. The news comes after Foxtrot and Dom's Kitchen & Market closed on April 23. 🌳 Dollar Tree Stores Tree said that it had started a formal review of strategic alternatives for Family Dollar, which it said could include among others, a potential sale, spin off or other disposition of the business. 💵 Walmart is now offering bonuses to its hourly employees in the US., the company announced Wednesday. The longer an associate has been with the company, the higher the associate's bonus potential, to a maximum of $1,000. 📚 In a blow to publishers and authors, Costco Wholesale plans to stop selling books regularly at stores around the United States, four publishing executives who had been informed of the warehouse retailer’s plans said Wednesday. 🚚 Albertsons and Uber have launched a new food rescue initiative that aims to address food insecurity and food waste in several major US cities. The program donates surplus food from the grocer’s stores to local nonprofits. 📸The TJX Companies, Inc., parent of TJ Maxx, Marshalls and HomeGoods, said it’s equipping some store employees with body cameras to thwart shoplifting and keep customers and employees safe. 🍔 McDonald's lost a European Union trademark dispute over the Big Mac name after a top European Union court sided Wednesday with Irish fast-food rival Supermac's in a long-running legal battle. ✂️ The Bank of Canada's decision on Wednesday to cut interest rates from 5% to 4.75% is expected to provide financial relief to Canadians and encourage consumer spending. 🧳 Shinola and Filson parent Bedrock Manufacturing Company has appointed Steve Katzman to the role of CEO and Kevin Wertz as chief marketing officer. 🇦🇺 ALDI Stores Australia is moving into the insurance sector, with the launch of a series of homes and contents, car, and landlord products. #retail #retailnews #economy #DailyRetailNews

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Thanks to The Business of Fashion for including my thoughts in this article on the potential acquisition of Neiman Marcus by the parent of Saks Fifth Avenue. The merger of the two companies will create some benefits, but it still leaves lots of questions as to their future place in the luxury retail sector. In my view, corporate dealmaking is always exciting and generates a lot of promises. However, the real challenge is actually delivering on those promises. More in the article: https://lnkd.in/eny9tJzC #retail #retailnews #luxury #departmentstores #fashion #apparel

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Retail Today / Retail Renaissance: Last week Wayfair opened their new store in the Chicago suburbs, creating a stunning physical store, focused on the experience of furniture/home shopping. #wayfair Not just any store but a spectacular two story 150,000 sq ft destination place, creating an emotional, entertaining atmosphere. With 19 departments from home decor, housewares, appliances, furniture and home improvement. #homedecor #furniture #appliances #homeimprovement Wayfair’s joins many E-commerce retailers, now becoming a omnichannel retailer but offering value, selection, service , fast shipping in an physical store. #ecommerce #omnichannelretail #brickmortar This $12 Billion Dollar Furniture Industry disruptor has been on a roller coaster ride for years, obviously a Wall Street darling and a personal “piñata” for me. Many questions remain but are rarely asked. What happens after the ballon drop and the excitement of opening? #sales #profitability #wallstreet What does Wayfair’s hope to accomplish with this fantastic store? What is your sales projection for the first year? 5-year? What is the projected ROI of this project? What are your expectations for customers in Chicago relative to the digital experience? How do you see them blending? How many locations could support a store of this magnitude? How will this effect your total company expenses and profitability? Again congratulations!! #retail #retailtrends #retailindustry #shoppingexperience #brandexperience #furnitureindustry #TopRetailExperts

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I am excited to share that my latest article has been published by CEOWorld! Drawing from my experience as a retail leader, I explore strategies that companies can implement to foster a consumer-centric team culture. This approach enhances the consumer experience, giving companies a competitive edge. Take a look at the article here: https://lnkd.in/dx7TkU8M #retailleadership #retail #leadership #womeninleadership #inspirationalleadership #CEOWorld

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In my experience as a buyer, I viewed brand-buyer relationships as collaborative, but it's crucial to recognize that not all collaborations are equal. When you seek a retail partner for growth - look for a retailer that is collaborative Understand that the retailer still operates as a for-profit business But, know that you play a role in helping them achieve their goals Here are some areas to consider when looking at collaboration with retailers Door Count Bigger does not necessarily mean better. If your original doors aren’t “ALL” that’s ok. Discuss a tiered plan for growth and expansion. Placement Every brand wants to be seen. Your shelf placement, or location in the store can determine how many consumer eyes see your product. Ask where you’re being placed. Marketing Yes, ask for support from the retailer in their advertising vehicles. But know this is the place where the brand does the heavy lifting. Be ready to shout to the rooftops where you are. Forecasts Work closely with buyers, planners, and your ops team to understand projections. Have a reserve stock to plan for overperformance. Sales Expectations Ask upfront about the retailer’s benchmarks. Consider how the category performs too. Check-Ins As a new brand, having regular check-ins with your buying teams is great. This could be quarterly, or monthly depending on the projected sales volume. A lot to cover, and I know you might not be there, yet. So save this for that future retail meeting - cheers! – 👋🏾 Hi, I’m Monique, your bridge from niche market to major retail. I’m a former retail buyer turned beauty industry advisor who helps emerging brands ready to scale. Ready to expand your reach? Book a discovery call and let’s explore how we can elevate your brand together.

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Nearly three-quarters of U.S. consumers are embracing the omnichannel shopping journey https://lnkd.in/ewKkHy3G 73% of consumers blend online research, physical store visits and options such as buy-online-pickup-in-store or in-store returns before making purchase decisions #retail #TRI Chain Store Age

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Seeing the remarkable success that live shopping has generated in China, U.S. retailers are eager to build out their own live shopping capacities to entice younger shoppers and deepen customer engagement. Although the live shopping category is expected to grow to $68 billion in the U.S. in just two years, translating the awareness that livestreams generate into conversions remains a challenge. In fact, in 2023, less than 15 percent of U.S. adults had made a purchase from a livestream shopping event. #liveshopping #retailinnovation

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