Written by Lauren Thomas
“Covid is surging again across the country,” CEO Jeff Gennette said during a post-earnings call with analysts. “And that continues to impede our recovery, in international tourism and urban areas. And the supply chains have opened up, yet problems remain.”
Macy’s said its flagship stores like its Herald Square location in New York City have been hit hardest during the pandemic. The lack of tourists and office workers shopping over lunch breaks and after work has hurt traffic, he said.
One of the company’s locations in El Paso, Texas, is closed due to a surge in cases there. Mall owner Simon Property Group said earlier this month it had been asked to shut down its Cielo Vista Mall in El Paso. The United States has regularly been logging more than 100,000 new daily Covid infections in the past two weeks.
Gennette said Macy’s is monitoring other communities closely and has a strategy to work through additional store closures. “We are getting expert at this,” he said. “We’re ready to go, no matter what comes our way.”
Gennette said he is optimistic consumers will be eager to get dressed up again, post-pandemic. The retailer’s sales have declined with fewer people visiting its stores for work clothes, prom dresses and wedding gowns in 2020.
People who “have been wearing the same clothes, lounging in active and in casual sportswear … they’re going to want to dress up,” Gennette said.
Macy’s shares were flat at midday Thursday.
Earlier in the day, the company reported a third-quarter, same-store sales decline of more than 20%. It said it expects same-store sales of owned and licensed stores to decline by a low- to mid-20s percentage during the fall.
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