Macy's To Close 100 more stores…

[averagejoe]

We all knew this was coming…Macy’s has just announced it’s closing 100 MORE STORES according to this WSJ report.

Macy’s Inc. said it would shut 100 more stores, representing about 15% of its store base and about 4% of its annual revenue, in the retailer’s latest move to contend with falling foot traffic and sliding sales.

Shares in the company, down 50% over the past 12 months, climbed 15% to $38.95 during premarket trading. Despite posting a sharp drop in quarterly profit and another period of declining sales, Macy’s helped lift retailers across the spectrum Thursday morning. Shares in fellow department store Nordstrom Inc. rose 5.4%, while J.C. Penney Co. stock gained 4.5% and Target Corp. shares rose 2.7%.

http://www.wsj.com/articles/macys-to-cl ... 1470918685

[Jonrox]

A quote from the same article you posted...

"Mr. Lundgren said in May, after Macy’s reported its worst quarterly sales result since the recession, that he wasn’t counting on consumers to spend more. Americans have been spending—the Commerce Department said late last month that personal consumption climbed 4.2% in the second quarter, the best rate since late 2014—but what they buy and where they buy it is changing. Shoppers are increasingly opting to make purchases online, especially at Amazon.com, leaving traditional retailers scrambling as foot traffic drops and consumers shell out less on things like clothing and more on services."

Sounds to me like things in the US are just fine. One retailer's loss is another's gain.

[Dizzy1]

Times are good, businesses grow. Times are lean, businesses adjust. Thats how things work, always have, always will. If a company doesn't adjust to the market, then the company goes bye bye, eventually.

People are starting to shop elsewhere, Macy's and other stores are facing more and more competition. Stores like Best Buy are starting to sell products completely unrelated to their core business - the market for consumers is changing and if one wants to survive, business models need to be constantly reviewed and changed accordingly.