Macy’s said Thursday that consumers across the country buy differently depending on where they live and their attitudes toward Covid.
During the retailer’s last fiscal quarter, he said, some people still didn’t feel comfortable entering a store, especially those in urban areas like New York.
“There’s definitely a different psychology with suburban and urban customers right now,” CEO Jeff Gennette said during a conference call on benefits.
Many of Macy’s stores in the suburbs operate before 2019 levels, he explained, as consumers in those areas feel more comfortable with more space to walk around.
One person looks at a Macy’s Inc. closed department store. near Union Square in San Francisco, California, USA, on Thursday, June 18, 2020.
Michael Short | Bloomberg | Getty Images
The city-based shops of the company remain the most challenged, as international tourism has not yet returned and people are more cautious when it comes to attacking crowded spaces. Gennette cited Macy’s flagship location in Herald Square in Manhattan as an example of a store that has yet to see visits return to pre-pandemic levels.
Gennette added that denser subway locations will recover as people return to work. But plans to return to the office have been changing because of the delta variant that is spreading, he warned.
“There are still pockets in the country where the store business … is off and it’s not related to the vaccination rate, it’s really the psychology of these customers,” the CEO said.
New cases of Covid-19 in the US are rising again at the fastest pace since the winter rise. The number of cases has been particularly severe in southern states such as Florida, Louisiana and Mississippi, where vaccination rates are low.
Macy’s shares closed nearly 20% on Thursday, after the department store chain increased its annual sales and earnings forecasts with optimistic second-quarter results.