Macy’s gives cash in effort to receive sales

In the final push to capture last minute sales, Macy’s has resorted to giving away $4.5 million in cash to customers at its stores across the country.



The promotion, which was not offered last year, was announced in a press released distributed at noon on Saturday, Dec. 19. The company said it would distribute $10 gift cards to the first 250 customers at 600 of its stores from Sunday, Dec. 20 through Tuesday, Dec. 22. The cards are only redeemable in store and must be used during the three day promotional window.



“As the ultimate destination for affordable gifts for everyone, we’re pleased to offer an extra holiday treat to our customers as they finish out their shopping over the next week,” Martine Reardon, Macy’s chief marketing officer said in the press release announcing the promotion. “We have a lot of great deals on last-minute gifts, and now shoppers who come early will get even more value with a free cash card on us.”



Macy’s is hoping the last minute marketing tactic drives sales by encouraging shoppers to turn out early and spend more since they have an extra $10 in their pocket. Handing out $10 gift cards to 250 customers at 600 stores for three days means the cash giveaway is costing Macy’s $4.5 million.



It is unclear whether the promotional strategy is a carefully designed element of a larger season-long campaign or a last minute desperation tactic to drive sales during what has been one of the warmest holiday seasons on record. Macy’s was on shaky footing heading into the holidays, having reported a significant profit decline and a 3.9% same-store sales decrease during its third quarter ended Oct. 31. At that time, the company’s pessimism about the holidays was implied in its forecast for fourth quarter same-store sales to decline in the range of 2% to 3% and said its full year earnings per share would fall in the range of $4.20 to $4.30, well below an earlier forecast of $4.70 to $4.80.