Macy’s is heavily investing in its Ala Moana Center store as part of a nationwide push to increase profitability amid fierce competition.
The store is one of the top 100 locations Macy’s is pouring money into for major upgrades that include new paint, carpets, lighting, fixtures and improved product assortment, technology and overall customer experience ahead of the most lucrative time of the year. The Cincinnati-based retailer wouldn’t disclose total investment or what it is spending on the Hawaii location, but last year it allocated $200 million to update the top 50 stores.
By the end of 2019, the 150 stores will represent roughly half of brick-and-mortar sales.
Macy’s has swept in to fill the void left when Sports Authority and Toys R Us went out business here, said Demmis Cisneros, general manager at Macy’s Ala Moana. The retailer more than doubled the size of the active wear department and tripled the number of toys on the floor this holiday season.
Nationally, holiday sales are projected to rise as much as
4.2% over the previous year to $730.7 billion, according to the National Retail Federation.
“We’re really going after this business in a really big way and we’re not going to let Target and Walmart take it all. We’re already beating our sales for last year,” he said.
Earlier this year, the department store added local favorite Liliha Bakery to the roster of businesses it leases space to as it pushes a more experience-driven shopping atmosphere. It also added Lenscrafters, which employs an in-store optometrist, so shoppers can get their eye care needs taken care of while shopping.
“(The customer is) looking for an experience now. She’s coming to the mall to come eat with a friend — to really have an experience — and then she’s going to come shopping,” he said. “We want to make it as easy as possible for her.”
Another major addition this year was the “At Your Service” department, which allows consumers to easily pick up online orders, pay their bills, return items and purchase gift cards. Macy’s also has significantly invested in technology that includes mobile checkout so that shoppers don’t have to wait in line for purchases.
“This is obviously to stay relevant when it comes to technology and online. I can tell you nowadays if you’re not in the online business, you’re not going to make it,” Cisneros said.
The Ala Moana location has added about a dozen key “ambassadors,” sale associates who only specialize in certain areas to help curate products for shoppers. It has close to 600 employees.
Macy’s is among the major department store chains struggling to stay relevant to consumers who shop online, look for experiences and seek out bargains, which is why it has been opening more off-price stores and expanding into the rental service and second-hand clothing business.
In recent years, the company announced it would close 100 stores and this year said it would cut about 100 jobs in management as part of a restructuring program. The retailer closed its Kailua store in 2016, and shuttered its downtown location in 2013.
For the second quarter, Macy’s reported a profit of $86 million, or 28 cents per share, falling short of the 45-cent per share Wall Street analysts had hoped.
Despite less tourism in Hawaii, Macy’s Ala Moana’s sales are up from last year because of the changes in store.
“We’ve spent several years rightsizing our store portfolio and feel our store fleet is now well-positioned to serve our omnichannel customer,” said Emily Workman, a company spokeswoman.
The company operates about 680 department stores under the Macy’s and Bloomingdale’s brands.