Macy’s Inc. (M), the leading click & mortar retailer in the U.S., plans to open a new store in Sarasota, Florida in fall 2014 to expand its operational roots in the region.
The new store will offer the residents of Sarasota an additional avenue to own Macy’s wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods.
Management stated that the planned 160,000-square-foot store will employ 175 associates. Macy’s currently operates through 3 locations in Sarasota.
Macy’s sustained focus on price optimization, inventory management, merchandise planning and private label offering, positions it well to drive traffic, meet customer-oriented demand and improve the in-store shopping experience.
Macy’s comparable-store sales rose 7.3% in March 2012, following an increase of 4.6% in February 2012 compared with a marginal growth of 0.9% in March 2011. As per the company, total sales for March grew 6.9% to $2,358 million from $2,206 million in the same month last year. The company expects comparable-store sales growth of about 3.5% for fiscal 2012.
Buoyed by better-than-expected March sales results, management hinted that comparable-store sales for the combined March and April period is expected to rise between 4.3% and 4.5%, up from 3% to 3.5% projected earlier. The guidance considers comps growth of 1% to 1.3% expected for the month of April.
Macy’s also announced that sales for the month of April are likely to be softer than March due to rush in shops on account of early Easter and a shift in the cosmetic event. Moreover, Mother’s Day in the later part of May will also prove unfavorable for April sales.
Macy’s, which competes with J. C. Penney Company Inc. (JCP), Dillard’s Inc. (DDS) and Saks Incorporated (SKS), currently operates approximately 840 department stores in 45 states, the District of Columbia, Guamand Puerto Rico.
Currently, we have a long-term Neutral rating on the stock. However, Macy’s holds a Zacks #1 Rank that translates into a short-term Strong Buy rating.
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