Macy's Unveils New Ventures In China And Brooklyn

Macy's Inc. on Wednesday unveiled two new ventures, one in China and one in Downtown Brooklyn, as it reported second-quarter earnings. The department store chain said it has formed a joint venture with Hong Kong-based Fung Retailing to test e-commerce opportunities in China. From late 2015, the company will start selling on Alibaba's Tmall Global site. "We have had initial success in partnering over the past year with Alibaba on various projects, including accepting Alipay on macys.com and conducting a special promotion during Black Friday 2014," chief innovation and business development officer said in a statement. The company is not planning to have any physical stores in China for the time being, he said. Separately, the company said it is planning a major redevelopment of its Downtown Brooklyn store in collaboration with property developer Tishman Speyer. Tishman will purchase part of the current Macy's site that is not planning to retain and develop into about ten floors of office space. Macy's will receive $170 million in cash and another $100 million over three years. Shares were down 2.3% in premarket trade and are down 2.7% in the year so far, while the S&P 500 has gained 1.2%.