Last year, Macy’s quietly launched its own retail media network, working with advertisers to provide Macy’s shopper data. The program, called Macy’s Media Network, began in August and has already grown to generate more than $35 million annually as a new income stream for Macy’s, according to CEO Jeff Gennette.
“We are also continuing to build on our customer value ecosystem, which would be loyalty, monetization and personalization enabled by our Star Rewards Loyalty Program,” Gennette said on a conference call today to discuss Macy’s fourth-quarter earnings. “In August, we grew this ecosystem by launching the Macy’s Media Network to connect strategic brand partners to our customers, which created a new fashion and beauty publishing model.”
He expects that programs like the media network, coupled with more customers using the loyalty program and Macy’s credit card, will lead to “up to $60 million in monetization income in 2021.”
A Macy’s spokesman said the program is run through a specialized in-house advertising team, and includes targeted retail media such as website display ads and sponsored products, as well as offsite digital and physical media ads.