Macy's Inc. Touts Pilot Program Of Same-Day Deliveries

Macy's Inc.

got some buzz and a boost Wednesday from touting its experimental same-day delivery service now running in eight of its markets. Also Wednesday, Macy's beat Wall Street's expectations with a 23 percent increase in third quarter profits. The company also trimmed its fourth-quarter outlook by about 3 percent, although it said it "remains optimistic" about the holiday shopping season. Macy's traded recently at $61.17 a share, up 4.4 percent. The retailer unveiled plans for same-day deliveries in March, and has been rolling out the pilot program ever since. In addition to the eight Macy's markets, the service is offered by the company's Bloomingdale's unit in four of the same markets. Markets include Chicago, Houston, Los Angeles, New Jersey, San Francisco, San Jose, Seattle and Washington, D.C. Belus Capital's Brian Sozzi, writing in TheStreet.com Wednesday, said Macy's is "setting the table for a future of more full-price sales and stronger earnings" with same-day deliveries and a plan to target online shoppers via Twitter Inc.

"with the new 'buy now' button." http://www.thestreet.com/story/12950090/1/macys-joins-starbucks-in-leading-the-same-day-delivery-movement.html?kval=dontmiss On Tuesday, Sozzi also warned of dire consequences for retailers stemming from a work-slowdown at West Coast ports. http://www.benzinga.com/analyst-ratings/analyst-color/14/11/5001153/labor-strife-expands-to-long-beach-port-stokes-fear-of-h Macy's Chief Executive Terry J. Lundgren said the pilot delivery program is part of the company's "omnichannel and marketing strategies" that will add to sales in the fourth quarter. Other elements include in-store pick-up for online shoppers now available in all stores, as well as improvements to the company's apps for mobile shopping. "And we are poised to capitalize on a return to more normalized weather patterns after the unusually severe snowstorms in the fourth quarter last year," Lundgren said. http://www.cpc.ncep.noaa.gov/products/predictions/long_range/seasonal.php?lead=1