First, a bit on that news:
http://money.cnn.com/2016/08/11/investing/macys-closes-100-stores/
Here is a snippet from the piece:
In a sign of how dramatically the retail shopping landscape is changing, Macy's is closing 100 of its stores nationwide.
Macy's (M) announced the closures Thursday. They represent about 15% of all Macy's department stores. The iconic retailer did not disclose the locations of stores, but said most of them will be shut down in early 2017.
The Macy's move is the latest in a wave of store closures amid the rise and success of Amazon(AMZN, Tech30) and other online shopping options.
So, the dismay kicked in a bit for reasons I'll soon get too. But first here is a little story from the folks at Bloomberg that really explains the landscape:
https://www.bloomberg.com/gadfly/articles/2016-08-15/macy-s-store-closings-should-spur-other-retailers-to-follow
Here is a snippet from the piece:
So why the dismay? I've written about Macy's a fair amount in these pages as a leader in digital. So if they are failing what hope is there for brick & mortar retailers? Should they all go the way of the dodo? I certainly never thought so, and I still don't. Why?
Look at this bit from that last article:
United States of Stores
America has more retail square footage than Australia, the U.K., Germany and Mexico combined
Look at that again. The U.S. is positively swimming in physical retail space, and now has a heavy online commerce presence as well. Something has to give. It simply must.
So, have hope retailers. Digital is your future, but in your future you will look different than you look today.
Happy Reading,
J.W. Gant
**UPDATE** Great little story along these lines over on Mobile Commerce:
http://www.mobilecommercedaily.com/macys-store-reduction-reflects-retailers-boundless-search-for-omnichannel
Macy's (M) announced the closures Thursday. They represent about 15% of all Macy's department stores. The iconic retailer did not disclose the locations of stores, but said most of them will be shut down in early 2017.
The Macy's move is the latest in a wave of store closures amid the rise and success of Amazon(AMZN, Tech30) and other online shopping options.
So, the dismay kicked in a bit for reasons I'll soon get too. But first here is a little story from the folks at Bloomberg that really explains the landscape:
https://www.bloomberg.com/gadfly/articles/2016-08-15/macy-s-store-closings-should-spur-other-retailers-to-follow
Here is a snippet from the piece:
Where Macy's goes, will other retailers follow?
America's largest department store chain pleasantly surprised Wall Street last week by announcing plans to close 100 stores. At 12 percent of its total store base, that's more locations than it shuttered during all of the last six years. Macy's shares spiked 17 percent on the news, as investors shrugged off a sixth straight quarter of declining same-store sales.
America's largest department store chain pleasantly surprised Wall Street last week by announcing plans to close 100 stores. At 12 percent of its total store base, that's more locations than it shuttered during all of the last six years. Macy's shares spiked 17 percent on the news, as investors shrugged off a sixth straight quarter of declining same-store sales.
So why the dismay? I've written about Macy's a fair amount in these pages as a leader in digital. So if they are failing what hope is there for brick & mortar retailers? Should they all go the way of the dodo? I certainly never thought so, and I still don't. Why?
Look at this bit from that last article:
America has more retail square footage than Australia, the U.K., Germany and Mexico combined
Look at that again. The U.S. is positively swimming in physical retail space, and now has a heavy online commerce presence as well. Something has to give. It simply must.
So, have hope retailers. Digital is your future, but in your future you will look different than you look today.
Happy Reading,
J.W. Gant
**UPDATE** Great little story along these lines over on Mobile Commerce:
http://www.mobilecommercedaily.com/macys-store-reduction-reflects-retailers-boundless-search-for-omnichannel
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