Why Is Everyone Talking About Macy's Stock?
On July 20, Macy's (NYSE: M) announced an acceleration in the growth of its off-mall, small-format stores. That's great news for the long-established retailer that was devastated at the early stages of the pandemic when it was forced to close its stores to in-person shopping.
Management can be commended for pivoting successfully, enhancing its digital business, which led to surging sales and profitability. Let's look at what this move could mean for investors and observe how much stronger Macy's business is compared to before the outbreak.
Macy's announcement said that it would open four new, small-format locations in 2022. It's a surprising shift considering that, for years, Macy's had been decreasing its physical footprint as consumers shopped online more often. However, this move isn't a complete reversal of that strategy. Instead, Macy's is adapting to consumer behavior effectively. These off-mall locations will cost Macy's less money to operate (lower rent and fewer employees).
Source Fool.com
