Macy's talks price increases
Retail Editor 3 -- Home Textiles Today, February 22, 2011
Cincinnati - Macy's put its spin on price increases during its quarterly conference call with analysts this morning and outlined some of the steps it is taking to keep them in line.
Commodity price increases constitute a "challenge" Macy's is taking "very seriously, but you need to keep this issue in perspective," said cfo Karen Hoguet.
"As a better-fashion retailer, we are less reliant on opening-price-point basics and have the ability to add quality features and fashion details that command a higher price point," she continued. "Average unit retails in these categories will increase, but into a lane in which we have successfully played prior to the recent recession."
She asserted that "a significant portion" of Macy's businesses are in categories "that are not impacted by the escalation in raw material prices."
Hoguet said Macy's has established a pricing team to provide more analysis on pricing decisions. The retailer is also monitoring consumer reaction to price increases on spring merchandise.
In addition, it is editing "peripheral assortments" to improve costs.
Overall, she said, the company is working to maintain its value position relative to competitors when passing along price increases.