Bloomingdale's Dubai sales 'back on track'

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Macy's Inc chief executive Terry Lundgren has said sales at its Bloomingdale's store in Dubai are "back on track" after first year blues.

He told a group of aspiring fashion industry executives that sales in the first year of the Dubai store, which opened in 2010 as part of a $73m joint venture with Al Tayer Group, were disappointing.

But he added that sales had picked up in the second year of operations, without giving further details, Reuters reported.

He said the department store chain plans to hire about 4,000 full-time employees this year, roughly the same number as last year.

Macy's has about 170,000 full-time employees companywide and operates 850 stores, including some 40 Bloomingdale's stores.

When asked about international expansion, Lundgren said it would take time to expand beyond the Dubai store, but it was something he spends half a day per week working on.

"It's a natural for a Macy's or a Bloomingdale's," Lundgren said of those chains' potential appeal abroad. "It's a matter of when and where."

He said online sales rose 39.6 percent last fiscal year and should top $2bn this year. Macy's will report full-year results on Tuesday.

Macy’s last year launched an online version of its Bloomingdale's store, which now ships to customers in 91 countries worldwide, including Bahrain, Egypt, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

The retailer is one of a slate of US stores that have expanded their brands into the Gulf, in a bid to tap the region’s wealthy population.

Limited Brands, operator of the Victoria’s Secret chain, and American Eagle Outfitters, are among the US retailers seeking a foothold in Dubai as domestic sales remain subdued.

Dubai is the second-most attractive emerging market for retailers after China, in part because high disposable income, according to management consulting firm AT Kearney.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Dubai's nightlife bubble: When is it going to burst?

Dubai's nightlife bubble: When is it going to burst?

A new breed of clubs and bars is sprouting in the city, but which...

12
Chocolate: worth its weight in gold?

Chocolate: worth its weight in gold?

Middle Eastern consumers with a sweet tooth are buying up ever...

Country focus: Lebanon’s start-up success

Country focus: Lebanon’s start-up success

A new-wave of entrepreneurship is helping Lebanon become a hot...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams