What: Macy’s Inc. CFO shares insights on the retailer’s new digital marketplace, pricing science and holiday positioning strategies.

Why it is important: Macy’s has adjusted how they view inventories and buying as they use their new marketplace as a testing ground for new categories and products without the same risk and operating expense as a traditional website.

Data showed that customers had been searching for products and categories that Macy’s did not have. Thus, the retailer created their marketplace which has also attracted younger consumers who are generating larger baskets in terms of units per order. According to Macy’s CFO, they are also innovating on the wholesale front by changing the way they buy and integrate teams across planning, finance and the supply chain. Buying has become more conservative as they build reserves into their product purchasing so that they can have more flexibility to adjust during the season based on demand. According to Macy’s data, 96% of marketplace customers are shopping what Macy’s has traditionally bought wholesale and listed on its website.

Price promotions are also seeing a revolution through technology. Using pricing science, Macy’s is conducting markdowns by store, by location, by style and even based on the availability of inventory and the level of sell-throughs.

Macy’s CFO did not underestimate the impact of inflation but believes that the retailer’s recent modernization initiatives have positioned them well for the gifting season.

Macy’s CFO shares on modernization