Macy's CEO On Successful Online Business: Goal Is To Surpass Netflix
Shares of omni-channel retailer Macy's, Inc. (NYSE: M) have been on a continuous bull run over the last five years, up by over 228 percent. However, contrary to popular opinion, much of that growth hasn’t come from the company’s brick and mortar stores, but rather through its e-commerce websites.
Macy’s CEO Terry Lundgren was recently on Fox Business News to discuss the company’s e-commerce business and how the customers have changed the way they shop over the years.
"We are the seventh largest Internet company in America – just behind Netflix. And my goal is to pass them this year," Lundgren said. "So, we are indeed a powerhouse when it comes to online and we have been investing in this business for a long time.
"It’s really the customer is not shopping that way any longer – they start with their phone, they go into the store, they touch their product, they’ll try it on, then they might go home and buy it online."
Lundgren highlighted how the consumers have become more knowledgeable, saying, "They know what they want. But they want to touch the fabric and try on the product, and I like that transaction. And the fastest segment of growth is you buy it online and then you pick it up at the store. So, you get immediate satisfaction of having the product."
An Omni-Channel Experience
"You have actually sat in the chair, or tried on the blouse or you have the makeup applied. So, you get that extra experience inside the store. But it’s really an omni-channel experience.
"I love that transaction, because the more the customer touches us – online, in-store – the more loyal they become," Lundgren concluded.
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