With its e-commerce sales up 40% in 2011, Macy’s Inc. is predicting a massive year ahead for its online channels. And with the company’s penchant for introducing innovative features and services online, there’s little doubt that the retailer will hit its mark.
Recent figures released by Macy’s Inc., highlighting its strong e-commerce growth in 2011, has the company forecasting an even better 2012 for its online channels. Continued growth on both Macys.com and Bloomingdales.com has got CEO Terry J. Lundgren excited.
“This will be another exciting year in every aspect of growing our business,” said Lundgren. “This includes our online business, which we expect will exceed $2 billion in sales in 2012.”
For the year ended Jan. 29, Macy’s reported:
• Online sales increased year over year 39.6% (online sales in dollars was not disclosed).
• Total sales increased 5.6%, from $25 billion in 2010, to $26.4 billion.
• Same-store sales, which include e-commerce, were up 5.3%.
• Net earnings grew 53.5%, from $847 million to $1.3 billion.
For the fourth quarter:
• Online sales increased year-on-year by 40%.
• Total sales increased 4.8%, from $8.3 billion in Q4 2010 to $8.7 billion.
• Same-store sales, which include e-commerce, increased by 5.2%.
•Net earnings were up 11.7%, from $667 million to $745 million.
Services implemented into its e-commerce strategy over the past 12 months have certainly helped Macy’s Inc. attain such incredible sales. In May, Macys.com commenced international sales to 91 countries and October saw the introduction of a new tool to its product pages called True Fit, which assists women in buying the best fitting jeans for them.
Along with new features and services, as well as a focus on product diversity, there is every chance that Macy’s online sales will surpass $2 billion, which has been recently echoed by the company’s CFO, Karen Hoguet.
“We do expect it to be more than $2 billion,” said Hoguet. “Hopefully, it will continue to grow at the pace that it is.”