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But, even with a renewed focus on exclusive and elevated product, Gennette noted that customers can continue to expect lots of sales. “We are going to remain a promotional department store, but we want those values to be much clearer to the customer,” the CEO said. As far as pricing goes, Gennette noted that the firm will move toward a more simplified pricing model that would communicate value primarily and include “faster and deeper permanent markdowns.” The department will also seek to reward its most valuable customers in a stronger way with the roll out of a new loyalty program in the fourth quarter. Macy’s is on a mission to grow its digital business. “Mobile transactions, both on the app and through our mobile web, are our fastest growing and most importantly it’s the highest customer satisfaction, so we’ve really worked through that and made a happy customer there,” Gennette said. “We got still things to do. We’re going to still improve the speed all the way through this year, browsing, transaction experience, to make it particularly how you shop in your local Macy’s.” Gennette said the firm is building in “stronger personalization and recommendation functionality within the mobile app,” and it looking to up its efforts around the buy online, pick up in store, or BOPIS, platform. “We like BOPIS because our customer loves it,” he said. “It’s also our most profitable transaction. It let’s her combine the best of both worlds, online and in-store.
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