Macy's CEO: Web Brings In $1 Billion On Its Own

Macys.com brings in about $1 billion a year, which isn't overwhelming for the $25 billion chain. But to have four percent of its global revenue coming from online is a continual surprise for CEO Terry Lundgren, according to a speech he gave Tuesday (September 22). Macys.com generated $30,000 in sales the first year it was launched--1996. As of Tuesday, Macy's "has invested more than $300 million in online infrastructure" and is tracking online sales increases of 13 percent compared with a year ago. Lundgren said Macy's internal figures show that "every dollar spent online influences $5.77 spent in the store over the next 10 days.

"I, for one, made zero money before 2000 on the Internet," Lundgren told about 2,000 people in attendance at the Mandalay Bay Convention Center, according to this Las Vegas Review-Journal story. "I truly did not get it. There wasn't a business model out there that made sense to me, but there was so much interest, it got my attention."