U.S department store giant, Macy’s nearly went bankrupt in 2020.
The department store found itself on bankruptcy watch lists in the summer, though it was eventually able to secure enough funding to survive. Still, its narrow survival, with the added impact of the COVID-19 pandemic, spelled trouble for Macy’s.
Fortunately for the company, it was able to see significant growth in ecommerce sales. Though they faced a 30 percent decline in total revenue, Macy’s saw a 20.9% increase in digital sales, ultimately making $7.71 billion from that avenue.
Now, Macy’s has big plans for their digital storefront. They hope to see $10 billion in sales in a single year by 2023.
Macy’s CEO Jeff Gennette elaborated on these plans in Fortune magazine last week.
“We have a profitable business, and it’s growing,” he said. “We have the opportunity to push the gas on all the things we know to maintain this growth.”
Interestingly, Gennette said that the physical Macy’s stores took on a new role during the pandemic. They acted as billboards to remind passersby about the brand, and that the digital store acted as the primary place of sales.
Ultimately, Macy’s turnaround from near-bankruptcy to digital success shows that ecommerce is a plausible option for retailers looking for a major boost.