Macy's, Inc. (NYSE:M) Q3 2018 Earnings Conference Call - Final Transcript
Nov 14, 2018 • 09:30 am ET
Thank you. The question and answer session will be conducted electronically. (Operator Instruction) Matthew Boss, JP Morgan.
Thanks and congrats on your fourth positive comp. Jeff, so I guess along those lines to map out sustainable positive comps from here. I guess, can you help us rank the initiatives that you have in place to improve store traffic. And then on the e-commerce front, can you help breakdown Vendor Direct and just the magnitude of this opportunity?
Matt. I think when we look at the fourth quarter. We're obviously looking at a very strong environment that we're playing on along with our competitors, so that the consumer confidence is very strong. The spending is strong. I think, the predictions when you look at of where consumer spending is going to be during the holiday season it's a very good backdrop for us. So we're -- if I was ranking to your question, I think our dotcom business, we expect that to continue to be very strong, certainly double-digit growth and it's a much higher penetration during the fourth quarter which really helps our comps in that particular quarter. And I think, one of the headlines on our dotcom business is that we've made significant improvements to the site navigation and content in 2018 and we're ready for the holiday season.
I'd say, the second piece of it is that our stores -- all stores are improving in their trend from where they've been and it's sequential improvement quarter-to-quarter and now that all the investments that has been -- has really touched all stores be it At Your Service or Mobile Checkout and certainly what we've done with the Growth50 initiatives, we're ready for all the gift traffic that we're going to get in the fourth quarter. So we're bringing a store fleet that has momentum into it with us. When you look at our strategic initiatives. You know, what I would say is that Backstage is a meaningful part of our comp and now that we've got as many stores as we've got and we've got as many parts of the country. So this -- the opportunity to now market that in the fourth quarter is going to help comps there. Vendor Direct having doubled the amount of SKUs online to have broaden menus, new categories for our customers online is certainly going to be a piece of our comp and then the radiated sales that come from BOPS and BOSS is -- you're in that 20% to 25% range is average on every one of those footsteps. We have a lot more activity going through the stores with the fulfillment options that converts digital demand to store traffic and radiated sales. That's kind of how I would rank, all of the options that we have going into the fourth quarter.
So I think that the last thing I'd say is just the momentum that the team has and that when you think about everybody aligned against comp store growth. Everybody