In its second-largest acquisition, Amazon buys the company for $970 million.
The department store chain expects to exceed $2 billion in online sales in 2012.
Macy’s Inc. sees a big year ahead for e-commerce in 2012.
Macy’s, No. 17 in the Internet Retailer Top 500 Guide, normally doesn’t break out actual numbers in its quarterly financials. But bolstered by continued strong growth on Macys.com and Bloomingdales.com, Macy’s expects web sales to top $2 billion in 2012.
“This will be another exciting year in every aspect of growing our business,” says CEO Terry J. Lundgren. “This includes our online business, which we expect will exceed $2 billion in sales in 2012.”
The new e-commerce projection for this year comes after strong growth for Macy’s online in 2011. For the year ended Jan. 29, Macy’s reported:
• Online sales increased year over year 39.6%. Macy’s didn’t disclose online sales in dollars.
• Total sales increased 5.6% to $26.4 billion from $25 billion in 2010.
• Same-store sales, which include e-commerce, grew 5.3%.
• Net earnings increased 53.5% to $1.3 billion from $847 million.
For the fourth quarter:
• Online sales increased year over year by 40%. Macy’s didn’t break out a specific metric.
• Total sales increased 4.8% to $8.7 billion from $8.3 billion in Q4 2010.
• Same-store sales, which include e-commerce, grew 5.2%.
•Net earnings rose 11.7% to $745 million from $667 million.
In 2011 Macy’s continued to diversify its e-commerce operation. The retailer in October rolled out a new tool on women’s denim product pages called True Fit, designed to help shoppers find the jeans that would fit them the best. In May Macy’s also kicked off international sales to online shoppers in 91 countries. Consumers can place orders at the retail chain’s Macys.com and Bloomingdales.com e-commerce sites. U.S.-based shoppers also can ship gifts bought through Macys.com or Bloomingdales.com to customers in those countries.
It’s the blend of new features and more product diversity that Macy’s is counting on to achieve—and possibly surpass— $2 billion in web sales in 2012, chief financial officer Karen Hoguet told analysts on the company’s year-end earnings call. “We do expect it to be more than $2 billion,” Hoguet said. “Hopefully, it will continue to grow at the pace that it is.”