What: Macy’s renegotiates deals with carrier services to reduce their delivery expense.

Why it is important: After peak season surcharges harmed the firm's holiday profits, the company made cutting delivery costs a primary focus.

Macy's CFO and COO, Adrian Mitchell, announced in an earnings call that the department store retailer successfully renegotiated carrier contracts, resulting in a decline in delivery costs in Q2 compared to the previous year. In Q2 2022, delivery expenses accounted for 4.5% of net sales, but in Q2 2023, they fell by 50 basis points. The specifics of the renegotiated deals were not disclosed.

Macy's uses UPS, the U.S. Postal Service, and DoorDash for same-day delivery.

Macy’s renegotiates carrier contracts for lower delivery costs