Just three weeks after the U.S. government began disbursing stimulus funds, big-box retailers such as Macy’s are starting to see an increase in consumer spend.
Macy’s CEO Jeff Gennette said the stimulus-driven increase in consumer spending has positively impacted the company’s top line. Business from Macy’s loyal customers is up by 10 percent since last quarter.
“That’s clearly the vaccine starting to take root,” Gennette told CNBC’s Jim Cramer. “We’re still taking a conservative view to this year. We’re more conservative in the front half than the back half, but it’s positive momentum that we’re bringing into this quarter with us.”
The company is also seemingly benefitting from an increase in spending from new and younger customers, who are turning to the company’s digital channels to make purchases. In its Q4 results, the company revealed that it had gained 7 million new customers, more than half of whom are shopping via digital channels. These shoppers spend nearly 8 percent more than the average Macy’s shopper on a year-over-year basis, CNBC reported.
“They’re younger, they’re more diverse,” he said of Macy’s newest shoppers. “The good news is that the core customer … trend is improving as they start to get the vaccination. [We’re] starting to see the activity digitally and in the stores.”
Macy’s digital business has grown by 25 percent over the course of the pandemic. Digital sales stood at $6 billion in 2019 and the company plans to grow them to $10 billion over the next three years, Gennette said.