Macy’s Inc. (M), one of the leading department store retailers in the U.S., recently announced its plan to open three more Bloomingdale's stores this fall. The operator of 850 departmental stores in 45 states started the Bloomingdale concept a year ago by opening four Bloomingdale’s outlets.
Bloomingdale’s target is to offer its customer the best of both worlds while providing comfortable yet stylish dressing materials. Bloomingdale's welcomes every season with collections that awakens the senses of the buyers. From lively colors and prints to the neutrals inspired from fall and retro apparel and accessories, Bloomingdale's offers convincing blend of quality and style.
Aimed to expand the terrestrial reach of Bloomingdale’s outlets, the company plans to open the new stores in Estero, Florida; Wrentham, Massachusetts and Schaumburg, Illinois.
The 25,000-square feet Florida outlet is set to open in September. The other two 24,000-square feet stores are scheduled to open in October. The company is planning to open more Bloomingdale stores in 2012 and beyond.
Macy’s department stores sell a wide range of merchandise. The company’s products include men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods.
Macy’s sustained focus on price optimization, inventory management, merchandise planning and private label offering, positions it well to drive traffic, meet customer-oriented demand and improve in store shopping experience. The company expects comparable-store sales growth of 3.0% for first-quarter 2011.
We remain optimistic about the company’s customer-centric localization initiative named My Macy’s. The program aims at improving comparable-store sales and reducing operating expenses, with stores and merchandise assortments focusing on local customer needs and preferences.
However, Macy’s operates in an extremely aggressive retail goods sector. The company faces tough competition from a varied group of competitors, such as Wal-Mart Stores Inc. (WMT), Target Corporation (TGT), general merchandise stores, specialty stores and discount stores, which are likely to weigh upon its financial results.
After a broad evaluation, we prefer to maintain a long-term ‘Neutral’ recommendation on the stock. Macy’s also holds a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
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