Macy’s reset: Bloomingdale’s momentum, beauty bets and the new department store model

Here are three key takeaways from the conversation, lightly edited for clarity.

Bloomingdale’s is driving growth

Jensen: “The main takeaway looking at Macy’s Inc. as a whole is that they are showing positive growth and positive momentum. A lot of that growth came specifically from Bloomingdale’s. They have had multiple quarters now of consecutive growth.”

Jensen: “With Saks and Neiman Marcus going through bankruptcy, there is a lot of uncertainty in the market. Bloomingdale’s has been able to take advantage of that and gain market share.”

The in-store experience is becoming more editorial and beauty-led

Jensen: “Department stores are having to take a more editorial approach to what they are offering, especially when it comes to the in-person experience. Macy’s is putting more emphasis on its higher-performing stores, renovating them to focus more on customer experience and bringing in new brands.”

Jensen: “Beauty is now front and center, with more services and more premium brands, creating a more elevated experience for customers. Consumers can buy these products almost anywhere, so department stores need to give them a reason to come into the store.”

Smaller formats, high-end beauty and cautious growth ahead

Jensen: “Bluemercury has a smaller footprint and offers more personalized service, with a tighter, more high-end assortment than what you might see at Sephora or Ulta. Growth within Bluemercury is being driven by fragrance and dermatological skin care, which are higher-priced categories. The company is also looking to leverage artificial intelligence across Bluemercury and Macy’s to better support staff in serving customers.”

Jensen: “They are projecting annual sales to remain relatively flat, which reflects a cautious outlook despite recent momentum. There is still a high level of competition, and the key question remains how to convince customers to visit stores when they have so many other options.”