"Macys offered an optimistic sales forecast for the rest of the year, though it said tariffs are expected to eat into margins. It's also trying to grow a part of the business that's immune to tariffs: selling ads on its website. It's a practice that's become increasingly important for many retailers as they attempt to imitate Amazon's success. Now Macy's is partnering up with the e-commerce giant to do just that."
"Of course, no one has done this kind of thing longer or bigger than Amazon. So Macy's has announced it's partnering with Amazon to sell ads for it. "They've really developed a huge suite of Amazon advertising tools that are much more sophisticated than many others," said Brad Jashinksy, an analyst at Gartner. Amazon launched its third-party ad service in January and Macy's is the biggest brand yet to sign on. The e-commerce giant's scale presents benefits but also risks for retailers."
Macy's reported quarterly earnings that were better than expected and is pursuing a turnaround after years of weak sales, closing over a hundred stores and updating hundreds more. The company offered an optimistic sales forecast for the rest of the year but said tariffs will erode margins. Macy's is expanding its digital-advertising business—selling sponsored search, after-purchase offers, and banner displays—which began in 2020. Macy's announced a partnership with Amazon to sell ads via Amazon's third-party ad service, leveraging Amazon's advanced advertising tools. The partnership raises benefits from scale but also risks, including sharing sales data with a potential competitor.
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