While JCPenney’s Ron Johnson continues his quest to reinvent the retailer, Macy’s is steadily taking market share.Profits at Macy’s climbed 38 per cent in the first quarter, the company announced yesterday. CEO Terry Lundgren told Evan Clark at Women’s Wear Daily they’re going to continue to get JCPenney’s customers while the department store takes time to revamp.
“We have demonstrated that we are taking market share,” Lundgren told WWD. “We are going to continue to take market share. We don’t have to have a perfect economic forecast in front of us to be able to forecast our business.”
Macy’s is picking up business in malls where it competes head-to-head with JCPenney, Lundgren said. Web sales also grew more than 30 per cent in the first quarter alone.
CFO Karen Hoguet acknowledged the progress, but told analysts in the company’s Q1 earnings call that “it’s hard to quantify how much” it’s taking away from JCPenney.
Last month, a report from UBS said that there’s a fight brewing between Macy’s and Kohl’s as they both try to take market share from JCPenney. It touted Macy’s as the “most-improved” and “well-embraced” department store, and said that Macy’s “elevated brand position” will help keep it protected.
So far, it appears Macy’s is winning.
We’ll get our first real sense of how JCPenney is doing under Johnson when they announce their results next week.