About Terry Lundgren
Terry Lundgren, former chairman and CEO of Macy's, appeared on the podcast "Retail & The Runway" on May 1, 2026, hosted by Ashley Morgan. During the episode, Lundgren discussed the responsibilities of a CEO, stating that he felt responsible for the 140,000 employees he oversaw at Macy's, Bloomingdale's, and Blue Mercury. He also addressed the future of retail, arguing that the strongest retailers will be those that offer an omnichannel shopping experience, combining physical stores with online sales. He noted that Amazon has succeeded without mastering the physical side of the business but said that for most other retailers, a formula involving both physical and online sales will be most successful.
Lundgren also commented on the role of artificial intelligence in retail, saying that while many believe AI will help them, they are unsure how. He advised that people should learn more about technology and AI, adding that AI "will more than likely replace some jobs but will create other jobs." Additionally, he encouraged students to make personal connections with executives, suggesting that taking the initiative to introduce oneself can leave a positive impression and provide a competitive edge.
Source: AI-verified profile updated from Terry Lundgren's recent appearances.
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✨ AI-enhanced transcript with speaker attribution
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Interviewer0:00
That was higher than its initial forecast but does lag last year's pop. Joining me to break down winners and losers, former Macy's CEO and Chairman Terry Lundgren, retail expert. I don't know what to make of the data. It's not inflation adjusted. We have a 7.1% inflation rate. Couldn't it just be that we have to spend more on all this stuff we're buying for the holidays?
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Terry Lundgren0:21
Well, first of all, I'm thrilled with the numbers. Because last year was a record, unbelievable 8.5% last year in the holiday season. So to put that type of increase on top of last year's numbers, Sara, I think was quite extraordinary. It just shows you that the consumer has money to spend and is willing to spend, and they showed that these last weeks.
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Interviewer0:46
What is the perception of where they're spending? There's a gap that's widening between goods and services for sure.
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Terry Lundgren0:52
Definitely. I think that gap will accelerate. We saw a drawback to goods during the pandemic, but it was strongly in favor of services prior to that. I see it going back to that norm again in 2023. So I see purchases on services and entertainment and travel, hospitality, food, restaurants, all those categories I think are going to benefit in 2023 when that shift occurs.
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Interviewer1:23
I feel like one of the biggest questions for the market next year, Terry, is what happens with the U.S. consumer. Does she hang in there? Because the story of this year is that, yes, the growth was better, better than the rest of the world. Now we're dealing with not only the inflation shock but a rate shock as well. The housing market is hurting. The stock market is hurting, which hurts people's retirement accounts. Can the U.S. consumer hold up amid all these headwinds next year?
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Terry Lundgren1:51
The answer to your question, can the consumer hold up, is yes. Let me just talk that through a little bit. So there's clearly more money in the savings accounts in total, particularly for this middle household income consumer, than there was in 2019. And that's thank you to the stimulus packages that were generated in 2020, 2021. There's still plenty of money, talking over $1 trillion in additional savings with consumers. That's a positive. They're spending it aggressively. That's been good for the economy. It's keeping the economy going, Sara. But the one number -- by the way, wages have been good. So obviously with the wages rising 6%, that's a big plus to put even more money back into consumers' pockets. However, to your point, with inflation being as high as it has been, and it varies in different categories, it's taking a lot of that discretionary opportunity to spend away. I think that will be particularly true in 2023. Christmas, Hanukkah, the holiday season, Thanksgiving, is an event-driven activity when consumers do all they can to come out and give that great gift to their friends and family. That's behind us. And so I do think you will...
