Macy’s has increased its sales outlook for the remainder of the financial year, signaling robust consumer spending despite concerns about a potential economic downturn. Chief Executive Tony Spring announced that the department store chain anticipates full-year sales between $21.5 billion and $21.6 billion, marking a revision from earlier estimates. The company reported approximately 3% sales growth in the quarter ending November 1, 2024, its strongest performance in over three years.
This update reflects a notable trend in the U.S. retail sector: consumers remain willing to spend but are increasingly selective in their purchases. Macy’s earnings statement highlighted that the adjusted guidance is based on the expectation that shoppers will continue to be discerning as the holiday season progresses. The report shows that while there is caution among consumers, enthusiasm for shopping persists.
Online shopping reached a new peak during the recent Black Friday sales, with consumers spending a record $11.8 billion, according to data from Adobe Analytics. Many shoppers took advantage of substantial discounts offered by retailers. Spring emphasized Macy’s strategy to enhance its appeal during the holiday period, stating, “As we enter the holiday season, we are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value.”
Macy’s sales increase can be attributed to its diverse offerings that cater to various consumer segments, from bargain hunters to those seeking luxury items. The upmarket Bloomingdale’s chain also experienced significant sales growth as part of this trend. Since his appointment in 2024, Spring has focused on revitalizing Macy’s by boosting staffing levels and enhancing marketing efforts in high-performing stores as part of a broader turnaround strategy.
Despite reports of low consumer confidence linked to rising costs this year, the National Retail Federation reported that a record 203 million people shopped during the Thanksgiving weekend, which includes Thanksgiving Day, Black Friday, and Cyber Monday, an increase from 197 million the previous year.
In a related development, discount retailer Dollar Tree reported 9.4% sales growth in its latest quarter, benefiting from consumers opting for more affordable purchasing options. This shift indicates that while some consumers are cautious, many are still willing to spend, particularly during the holiday shopping period.
As the season unfolds, Macy’s will continue to navigate the delicate balance of meeting customer expectations while adapting to the evolving economic landscape.
