Macy's (NYSE: M) is laying the foundation to extend click-and-collect service to all stores nationwide this summer.
The retailer rolled out in-store pick-up to 500 Macy's stores and 36 Bloomingdale's stores last fall, and so far the program is performing well. Due to the success of the pilot, the chain will implement the service to all of its 840 department stores.
Macy's says the program has resonated with customers looking for additional convenience and as an alternative to same-day delivery.
"In some cases, it's somebody working that wants to order something at the office and pick it up on their way home and doesn't want a package sitting on a doorstep. In other cases, it's wanting to browse online and be sure that what you want is in the store when you get there," said Karen Hoguet, Macy's CFO, on an earnings call.
Hoguet added that Macy's will invest in new technologies to accelerate omnichannel capabilities and extend click-and-collect chain-wide. The retailer will also be looking to expand its "search and send" service, which allows shoppers to order an item from a store's inventory and have it delivered.
"The store-to-door, or search and send as we call it, has also been very helpful, allowing us to get goods to customers when either we're out of a particular size or color at a store, or in some cases we don't carry that brand or that item in a store," said Hoguet. "That just continues to grow and be a terrific source of customer satisfaction as we go forward."
Separately, Macy's said it has implemented new technology into its website that will help the company better understand shoppers' buying behavior and optimize email and website marketing campaigns.
The retailer has partnered with SAP InfiniteInsight to design a new system that provides predictive analytics for its online business. The technology will help Macy's understand the likelihood of customers spending on the Web in a certain product category.
The technology has been in effect for the past three months, during which Macy's has seen an eight to 12 percent increase in online sales. This has been achieved with the help of more targeted emails to registered users and visitors to the macys.com website.
During the most recent quarter, Macy's posted earnings of $224 million, up 3 percent from the $217 million it earned a year earlier. Revenue slipped 1.7 percent, to $6.28 billion, while revenue at stores open at least a year fell 1 percent.
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