What: Macy’s chief merchandising officer, Nata Dvir, discussed Macy’s priorities and objectives, as the retailer navigates challenges in the supply chain and shifting consumer shopping behaviors at the Jefferies Annual Consumer Conference.

Why it is important: Dvir started out stating that, Macy’s strengths in gifting, whether it’s for Valentine’s Day, Mother’s Day; tailored clothing, and dresses, though she also cited strides in refined sportswear and the more casual sides of the business.

During the pandemic, part of what Macy’s sharp on was how they thought about inventory productivity. A lot of this was in flight, but the pandemic was an opportunity to think through what the sell-through of an item might be, what is the life cycle of a product. It has really taught Macy’s to think differently about every receipt dollar they spend, but also about making it easier for the customers to shop.

Macy’s is also so excited about so many things that are starting to check. Customers are going back into everything, events, working, and real life. Every moment now feels like a special occasion. Whether they are going up a size, or down a size, they have to really replenish their wardrobe.

Macy’s is conservatively forecasting that sales will be flat to up 1% for the full yea, but has been on a roll the last few quarters including reporting a net profit of USD 286 million in the first quarter this year, up from USD 103 million in the year-ago period, on a comparable sales gain of 12.4%.

It’s expected that among the categories that will be bolstered or will be new to the assortment are toys, pet supplies and technology. Both Macy’s and Bloomingdale’s will be growing their digital businesses by launching marketplace formats next August. Retailers operating online marketplaces procure merchandise through a few business arrangements including revenue-sharing agreements, commissions, wholesaling and drop shipping.

Macy’s is embarking on a sweeping overhaul of its private brand business, which accounts for just under 20% of the total business.

Macy’s CMO on shifting priorities, challenges and shopping trends