Macy's Inc.
(
M
), the leading click & mortar retailer in the U.S., plans to
open a new store in Sarasota, Florida in fall 2014 to expand its
operational roots in the region.
The new store will offer the residents of Sarasota an additional
avenue to own Macy's wide range of merchandise, including men's,
women's and children's apparel and accessories, cosmetics, home
furnishings and other consumer goods.
Management stated that the planned 160,000-square-foot store
will employ 175 associates. Macy's currently operates through 3
locations in Sarasota.
Macy's sustained focus on price optimization, inventory
management, merchandise planning and private label offering,
positions it well to drive traffic, meet customer-oriented demand
and improve the in-store shopping experience.
Macy's comparable-store sales rose 7.3% in March 2012, following
an increase of 4.6% in February 2012 compared with a marginal
growth of 0.9% in March 2011. As per the company, total sales for
March grew 6.9% to $2,358 million from $2,206 million in the same
month last year. The company expects comparable-store sales growth
of about 3.5% for fiscal 2012.
Buoyed by better-than-expected March sales results, management
hinted that comparable-store sales for the combined March and April
period is expected to rise between 4.3% and 4.5%, up from 3% to
3.5% projected earlier. The guidance considers comps growth of 1%
to 1.3% expected for the month of April.
Macy's also announced that sales for the month of April are
likely to be softer than March due to rush in shops on account of
early Easter and a shift in the cosmetic event. Moreover, Mother's
Day in the later part of May will also prove unfavorable for April
sales.
Macy's, which competes with
J. C. Penney Company Inc
. (
JCP
),
Dillard's Inc
. (
DDS
) and
Saks Incorporated
(
SKS
), currently operates approximately 840 department stores in 45
states, the District of Columbia, Guamand Puerto Rico.
Currently, we have a long-term Neutral rating on the stock.
However, Macy's holds a Zacks #1 Rank that translates into a
short-term Strong Buy rating.
DILLARDS INC-A (
DDS
): Free Stock Analysis Report
PENNEY (JC) INC (
JCP
): Free Stock Analysis Report
MACYS INC (
M
): Free Stock Analysis Report
SAKS INC (
SKS
): Free Stock Analysis Report
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