Macy’s CEO Hopes Americans Go Shopping to Ease Election Stress
(Bloomberg) -- Macy’s Inc. is betting Americans will turn to retail therapy as the battle for the White House heats up.
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Tony Spring, who became the department-store operator’s chief executive officer six months ago, said on Wednesday during an earnings call that the company’s stores offer “escapism and entertainment.” And that might be in high demand during the race between Donald Trump and Kamala Harris.
Target Corp. executives also sounded optimistic that shoppers seeking stress relief can boost spending.
“American families continue to deal with a lot,” Target’s Chief Commercial Officer Rick Gomez said during an earnings call. “These pressures are clearly weighing on them, and they’re looking for a refuge from the everyday stress that they’re feeling.”
During past election cycles, retailers have taken the opposite stance by warning investors that politics was grabbing so much attention that Americans were shopping less. In 2016, when Trump beat Hillary Clinton, companies spanning Barnes & Noble to Gap cited the stress of the contest as hurting demand.
While Macy’s and Target sounded optimistic about the election driving sales, their forecasts indicate that’s probably wishful thinking. Target said its comparable sales this year are likely to be in the lower half of the range it forecast. Meanwhile, Macy’s lowered its annual revenue outlook.
“Our customer became more discriminating, which we attribute to ongoing macroeconomic uncertainty and an increasingly complex news cycle,” Spring said on the earnings call.
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