Web sales at Macy’s grow 29% in 2008 while total sales sink 7.7%

The full-year story on 2008 is in for Macys Inc., the department store chain, and final numbers confirm what the chain experienced as the year progressed: Online sales had blow-out growth while the stores continued to sink.

Macy’s online sales grew 29% in 2008 while total sales were down 7.7% and comp-store sales were down 7%.

Macy’s, No. 28 in the Internet Retailer Top 500 Guide, didn’t break out dollar numbers for online sales in its earnings report this week, but the Internet Retailer Top 500 Guide estimated Macy’s 2007 web sales at $812.2 million. Growth of 29% would put Macys.com’s 2008 sales at $1.04 billion, an increase of about $230 million.

By that measure, the web accounted for 4.2% of Macy’s sales in 2008 vs. 3.1% the year before. Total sales in 2008 equaled $24.89 billion versus $26.31 billion in 2007. Macy’s includes web site sales in its same-store sales calculations.

Macy’s bottom line was in positive territory, with net earnings of $280 million versus $893 million a year earlier.

Macy’s executives were unable to explain the cause of the growth in web sales in a call with stock analysts this week. When an analyst asked why online sales had grown so strongly, Karen M. Hoguet, Macy’s CFO, said, “I don’t know, honestly. We’re very pleased with it, I think the team working on Macys.com has done a terrific job of integrating it more and more with the store experience, so I think that’s a piece of it. I think that the site looks better than ever, the assortments are sharp and were in stock. I have to believe that helps. But I’m surprised.”