2. Macy's reported quarterly earnings yesterday and the CEO is blaming a bad Q2, in part, due to too many markdowns and cushioned the blow by announcing a new partnership with resale site ThredUp, as well as the launch of a subscription service at Bloomingdale's. Macy's CEO Jeff Gennette attributed the company's failure to meet analysts' expectations to "a miss on fashion in our key women’s sportswear private brands, slow sell-through of warm weather apparel, [and the] accelerated decline in international tourism." Macy's share price fell 12 percent, while rival department stores also saw their stock prices drop and the S&P Retail ETF dropped to its lowest in two years after the earnings call.
Looking forward, Macy's will pilot ThredUp second-hand sales in 40 stores to appeal to Millennials and Gen Z. It is also testing a subscription model called My List @ Bloomingdales. It plans to roll out a similar subscription to Macy's after analyzing key learnings from Bloomingdale's. Gennette said of the subscription model, "We need to play in this game." Macy's also needs to play a little more on Instagram. Content from influencers using #macyslove is way more interesting than Macy's official Insta (which feels old, to be honest). - CNBC