13 Aug Macy’s Forms Joint Venture to Explore Chinese Retailing
Macy’s, Inc. has formed a free-standing joint venture with Hong Kong-based Fung Retailing Limited that will begin selling in China in late 2015 through an e-commerce presence on Alibaba Group’s Tmall Global.
Macy’s China Limited is expected to invest approximately $25 million in the operations of the joint venture over the next 18 months, of which Macy’s, Inc. will fund 65 percent. Macy’s, Inc. expects no material impact on its earnings in fiscal 2015. Current plans call for Macy’s e-commerce sales to reach approximately $50 million in China in 2016. Future sales levels and investment, including potential stores, will be determined after evaluating Chinese shopping patterns and results in the initial e-commerce phase…