• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
RetailMacy's

How Macy’s plans to hit its $10 billion e-commerce goal

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
February 23, 2021, 3:31 PM ET
A pedestrian passes in front of Macy's flagship department store as snow falls in the Herald Square area of New York City on Feb. 1, 2021.
A pedestrian passes in front of Macy's flagship department store as snow falls in the Herald Square area of New York City on Feb. 1, 2021.Photographer: Jeenah Moon/Bloomberg via Getty Images

In a horrible year for Macy’s, during which the pandemic decimated its already struggling business, one big source of relief for the department store operator came from its e-commerce operations.

Macy’s—long a strong online retailer—said on Tuesday that online sales rose 21% during the holiday quarter and generated almost half of its sales, blunting the sales drop at its physical stores. Comparable sales including e-commerce fell 17% in the quarter.

Already a top 10 digital retailer, Macy’s now says it can get to $10 billion in digital sales within three years, up from about $7.6 billion in 2020. (It lags behind only Amazon in online U.S. shoe and clothing sales.)

Macy’s CEO Jeff Gennette told Fortune on Tuesday that the company would hit that milestone by widening its online assortment with more styles and sizes than it carries in stores, having the brands Macy’s sells ship more items directly to customers, adding more brands and product categories, and using its stores to an even greater degree to help it fill orders. Last quarter, stores helped fill 25% of Macy’s online orders either by having shoppers come to retrieve them or using store inventory to fill them, two things that bolster profits.

“We have a profitable business, and it’s growing,” said Gennette. His finance chief, Adrian Mitchell, said Macy’s e-commerce business was now more profitable than its stores business.

At the same time, Macy’s executives on a conference call with Wall Street analysts defended the role of stores in its operations, even as the retailer continues to close 125 stores in lower-tier malls.

Stores act as billboards and marketing tools for Macy’s and remind shoppers it exists. Mitchell said Macy’s online sales per capita were around twice or three times higher in markets where it has stores. (Macy’s has been tinkering with a small-store format that Gennette says could help it “backfill” markets where it doesn’t have stores and mitigate that risk.)

Macy’s remaining stores will remain key to supporting its e-commerce, sustaining customer awareness, and offering them something more exciting than online shopping. And Gennette sees a key benefit there for stores from his $10 billion e-commerce push in addressing a long-held customer gripe.

“They were cluttered, so this is an opportunity to get them streamlined, cut out a lot of duplication, get things out of the aisle,” Gennette said.

That will be key to protecting the venue in which Macy’s still gets the bulk of its business: stores. GlobalData managing director Neil Saunders said in a research note, “Standards in most Macy’s shops, for example, are little short of appalling.”

Another benefit to Macy’s e-commerce push: It will reduce the chain’s reliance on clothing, one of the hardest-hit parts of consumer spending during the pandemic, and allow it to expand its research in growing areas like home goods and beauty. By having outside brands fill more orders themselves and spare Macy’s from having to buy and deal with extra inventory, the logic goes, Macy’s will be more flexible in getting into hot categories faster.

“Apparel, I believe, over time is going to continue to shrink as a percentage of our overall business,” he says. 

Luckily for Macy’s, the company has been building up its e-commerce muscle for years, being one of the first big retailers to facilitate in-store pickup of online orders. Now, as the department store looks to recover from the biggest storm in its history, it will rely on its digital prowess even more. And face stronger competitors: Much of what Macy’s outlined on Tuesday echoes what Nordstrom, for one, announced earlier this month.

Macy’s net sales fell 29% in 2020 to $17.35 billion, and it suffered a net loss of $3.9 billion. It expects sales to rise as much as 20% this year, which on the face of it seems impressive. But even if that happens, and it’s a big if, that would still leave it more than $4 billion below 2019 levels. So it really needs the e-commerce push to pay off.

“We have the opportunity to push the gas on all the things we know maintain this growth,” Gennette said.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

target
Retailearnings
Target posts biggest jump in comparable sales in 4 years as turnaround takes shape
By Anne D'Innocenzio and The Associated PressMay 20, 2026
5 hours ago
Variational co-founders Edward Yu and Lucas Schuermann pose for a picture
CryptoCryptocurrency
Variational raises $50 million Series A to bring liquidity from traditional markets to blockchain rails
By Jack KubinecMay 20, 2026
8 hours ago
A Pizza Hut workers prepares an order for delivery.
LawFood and drink
Pizza Hut franchisee claims $100 million losses from ‘cascading operational breakdowns’ in AI adoption gone wrong
By Sasha RogelbergMay 19, 2026
1 day ago
Photo of Donald Trump (left) with Mark Cuban
PoliticsDonald Trump
Trump and Mark Cuban end war of words to tag-team America’s drug pricing crisis: ‘Democrats want cheaper medications, too’
By Catherina GioinoMay 19, 2026
1 day ago
‘This is what the consumer wants’: A new lawsuit about PFAS and other ‘forever chemicals’ is heating up the cookware industry
Big TechLawsuit
‘This is what the consumer wants’: A new lawsuit about PFAS and other ‘forever chemicals’ is heating up the cookware industry
By Catherina GioinoMay 19, 2026
1 day ago
andic
LawBillionaires
Spanish police arrest son of retail billionaire who fell off a cliff and died. He was the only witness
By The Associated PressMay 19, 2026
1 day ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
24 hours ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
3 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
8 days ago
Current price of oil as of May 19, 2026
Personal Finance
Current price of oil as of May 19, 2026
By Joseph HostetlerMay 19, 2026
1 day ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
2 days ago
CNN analyst and 'The Morning Show' producer says Stephen Colbert is a role model for his ‘positive’ outlook on his show ending
Arts & Entertainment
CNN analyst and 'The Morning Show' producer says Stephen Colbert is a role model for his ‘positive’ outlook on his show ending
By Emma BurleighMay 19, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.