Macy’s considers outlet business

Cincinnati Macy’s is evaluating the potential opportunities of an outlet-store business, Terry Lundgren, Macy’s CEO announced following the chain’s annual meeting in New York City on Friday.

Realizing that the remainder of 2009 will be highly competitive and shoppers will remain price sensitive, the chain is eager to capture the large customer base that searches for the value and quality found at outlet malls.

“The idea is on paper but we have nothing to announce,” he said. “There is an outlet customer who shops those outlets. It’s an opportunity for us.”

While the company explores the opportunity, the chain continues to pursue its consumer-centric strategy through its My Macy’s initiative. The program focuses on localized inventory assortments, driven by collaboration between managers and suppliers who analyze shopper trends and demand. The program has already been rolled out to 69 divisions.

“Our My Macy’s started showing results by the fourth quarter of 2008 -- earlier than we anticipated,” Lundgren said.

Approximately 1,600 managers visit stores in their district at least once every two weeks to stay abreast of each location’s color, size and style trends.