Macy’s, the largest US department store chain, on Wednesday underlined the increasing lure of online sales to embattled US retailers, as it reported a 16 per cent increase in quarterly sales on its website, even as store sales fell 9.5 per cent.

The retailer stepped up investment in its online business over the past two years, after ending an initial online partnership with Amazon. Terry Lundgren, chief executive, said that in the future more of Macy’s capital expenditure would be directed online as expansion of its 840-strong network of physical stores slows.