Senior Macy’s (NYSE:M) executives have been making several trips to China recently to discuss the possibility of opening the department store chain overseas.
Although a strategy has yet to be developed, Karen Hoguet, Macy’s CFO, says the retailer is already doing business there online, reported Women’s Wear Daily.
“We did a test last year for Black Friday, which was very successful,” Hoguet toldWomen’s Wear Daily. “So 10 years ago, when we were looking at China, it was, ‘Do we want to open or partner with someone to open lots and lots of stores?’ Ten years later, as you might imagine, a lot more is focused on the internet and omnichannel because the world’s changed.”
So while Hoguet did not confirm a business deal with China, she says the demand is there. With the growing popularity of e-commerce in China, many U.S. retailers are now interested in partnering with China’s online retail giant, Alibaba, to break into the market. For example, Costco (NASDAQ:COSTCO) sells its warehouse goods on the T-Mall website, and Inditex, parent company of Zara, turned over partial control of its e-commerce site to Alibaba.
During Black Friday, Macy’s test involved offering discounts on about 100 items and partnering with Alipay ePass, which aids U.S. retailers in selling online in China.
Macy’s held out for a long time on its international expansion and will now open a department store on Al Maryah Island in Abu Dhabi in 2018. A second Bloomingdale’s, the first in Dubai since 2010, will open in Al Maryah Central. The stores will be operated under licenses provided by Al Tayer Group. The new locations have thus far been a success, opening up the Bloomingdale’s brand to shoppers all over the world.