Martha Stewart Living's Retail Strategy
Retail sales continue to be a mixed bag. But one clear winner is the department store Macy's, its revenue jumped and topped Wall Street forecasts for the month of July.
This is good news for the upscale line of home products that Martha Stewart sells through the store. Macy's management team "weathers the storm every time—they know what they are doing," Charles Koppelman, executive chairman Martha Stewart Living Omnimedia told CNBC on Thursday.
The consumer is looking for better value and affordable luxury, which is "perfect for our sweet spot," Koppelman said.
People have to get back in the mode of being prudent in what they spend and being a little bit more confident. The way to do this, according to the executive chairman, is to change the psychology of the 90 percent who are employed so they spend more. That in turn will create jobs for the other 10 percent.
The strategy at Martha Stewart was to "trade in 1200 mediocre environments for over 6000 of the best managed retailers in the country", such as Home Depot and PetSmart—"our products speak to that," he said.
With the holiday season right around the corner, consumers are looking for better value, he said.
"Over 60 percent of the people we surveyed have dinner at home five nights a week with their families," which speaks to the business we are in—kitchen appliances, products, cooking utensils—Koppelman concluded.
- Macy's Revenue Figure Climbs in July
- CNBC's Earnings Central
Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.