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Macy's Digital & Store Enhancements Drive Omni-Channel Sales Momentum

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Key Takeaways

  • Macy's delivered 2% comparable sales growth in 3Q25, its strongest comps performance in 13 quarters.
  • M saw higher engagement from app and website upgrades, personalization and Macy's Marketplace expansion.
  • Macy's Reimagine 125 stores outperformed, while a new China Grove center cut costs and sped deliveries.

Macy’s Inc. (M - Free Report) continues to make meaningful progress on its omni-channel transformation as the company strengthens digital capabilities, elevates in-store experiences and modernizes its end-to-end operating model. Under its Bold New Chapter strategy, Macy’s is working to deliver a more seamless, efficient and inspiring shopping journey that blends the strengths of physical retail with the convenience and personalization of digital engagement.

Momentum became evident in third-quarter fiscal 2025, when Macy’s nameplate achieved 2% year-over-year comparable sales growth, marking a second consecutive quarter of positive momentum and the strongest comps performance in 13 quarters. Management highlighted that enhancements across the Macy’s app and website, along with stronger personalization and the expansion of Macy’s Marketplace, contributed meaningfully to customer engagement.

Rising Net Promoter Scores reflected improving satisfaction with the omni-channel experience and validated the strategy’s customer-facing progress. In stores, the Reimagine 125 initiative remained a key performance driver, generating a 2.7% comp increase and outperforming the broader fleet.

Operational modernization reinforced the omni-channel gains. The opening of the new China Grove, N.C. fulfillment and replenishment center expanded automation, robotics and AI capabilities, enabling faster delivery, fewer split shipments and lower unit fulfillment costs. The state-of-the-art site supports both digital orders and store inventory productivity, positioning Macy’s to scale faster and more profitably as adoption of blended shopping behaviors accelerates.

Collectively, Macy’s digital enhancements, store reimagination efforts and supply-chain modernization are reinforcing the company’s competitive position. As consumers increasingly blend online browsing with in-store purchasing, Macy’s is building a more resilient and productive omni-channel model poised to support sustainable growth and improved profitability.

Omni-Channel Momentum at KSS & COST vs. Macy’s

Digital enhancement is playing a pivotal role in Kohl’s Corporation (KSS - Free Report) as it modernizes its retail experience through AI-driven personalization and app improvements. The company is applying artificial intelligence to boost efficiency, elevate customer engagement, and optimize marketing investments.

By enhancing its e-commerce capabilities and streamlining omnichannel functions, Kohl’s is building a more frictionless and consistent shopping journey. These initiatives reflect a disciplined approach to innovation that positions Kohl’s for stronger long-term growth.

Costco Wholesale Corporation (COST - Free Report) continued to invest in digital enhancements that strengthen both the online and member experience. In digital, site traffic in the first quarter of fiscal 2026 grew 24% year over year and app traffic was up 48%. Systems upgrades and tighter integration with warehouse operations are also improving logistics, delivery and customer satisfaction.

These technology-driven initiatives allow Costco to meet rising digital expectations and boost omnichannel engagement. Through continued investment in its digital and operational infrastructure, Costco aims to maintain strong member value and reinforce its competitive position.

Macy’s Price Performance, Valuation & Estimates

Shares of the company have surged 85.7% in the past six months as compared with the industry’s 71% growth.

 

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From a valuation standpoint, Macy’s is trading at a forward 12-month price-to-sales ratio of 0.29X, down from the industry average of 0.54X.

 

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The Zacks Consensus Estimate for Macy’s fiscal 2025 earnings implies a year-over-year decline of 18.2%, whereas the same for fiscal 2026 indicates an uptick of 2.9%. Estimates for fiscal 2025 and 2026 have been revised upward by 16 cents and 7 cents, respectively, in the past 30 days.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Macy’s currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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