https://content-az.equisolve.net/_e8ef66e91bbbccc10ae82ea63600b269/macysinc/db/356/6038/presentation/Virtual+Fireside+Chat+Presentation+4.30.20+FINAL.pdf
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While sales are only coming from e-commerce operations, consumers are still buying some items. The home (including furniture and cookware) and beauty categories have both been strong areas of the business through COVID-19; unsurprisingly, apparel, particularly dresses and men’s dress shirts, has not been in demand, Gennette says. “The more casual it is, the better it’s doing,” he noted, highlighting a style trend that was already in effect pre-pandemic that may further accelerate now.
Once customers return to stores, however, they may be lured in by the deep discounts Macy’s is offering as it seeks to unload excess inventory before the fall and holiday seasons.
Americans are hoarding cash: Savings rate hits its highest level since 1981
The United States government's Bureau of Economic Analysis reported Thursday morning that the savings rate surged to 13.1% in March – up from 8% in February.
That's the highest savings rate since November 1981. Americans had $2.17 trillion in savings last month.
Consumers are putting more money away at a time when bank savings, money market accounts and Treasury bonds are yielding next to nothing after the Federal Reserve slashed rates to zero last month and launched numerous lending programs in the wake of the Covid-19 pandemic.
Please expect at max sustained 40 percent business volume ... People will save more while being afraid. Macy's does not have merchandise to overcome savings and fearful mindset.
He is expecting 15-20% of usual store sales for right now...picking up over time.
This approach will lead to 30 percent business volume compared to pre COVID ...