Macy’s may hold the winning formula in today’s retail world. The department store giant beat earnings expectations Wednesday which has a combination of reduced inventories, targeted market strategies as well as brand new merchandise.
“Macy’s will be investing for the future,” Matthew Boss, retail analyst at J.P. Morgan, told CNBC on “Squawk Alley” Wednesday.
Shares of Macy’s closed up 10 percent Wednesday, the company’s best day since December 2008.
however This kind of’s not just Macy’s in which’s gaining ground within the retail race. Given the strength of the consumer, retail in general — both traditional as well as e-commerce — will be on the upswing, said Jan Kniffen, CEO of J. Rogers Kniffen Worldwide Enterprises, a retail research as well as consulting firm.
To survive in today’s retail world, brands need to rebuild their online presence each year as well as restructure brick-as well as-mortar stores to offer brand new things in store,” Kniffen said.
“The players in which are winning are learning to play the game in This kind of brand new age,” Kniffen said Wednesday on “Squawk on the Street.”
In fact, with increased tourism, better weather on the horizon as well as brand new fashion options, both Kniffen as well as Boss said the strength of the underlying consumer will be strong — perhaps stronger than some investors think.
“As we move forward … I think you’re going to get solid retail numbers out of different global brands, as well as off-pricers,” Boss said. “There’s more fashion, there’s more newness. There just seems to be a lot of underlying positives in which for the last couple of years have actually been negatives for a lot of these retailers.”
The winners, Boss said, are those “who can adjust to the brand new world of retail in which’s both brick-as well as-mortar as well as digital.”