Sixty percent of Macy’s value lies not in its stores, brands, or IP, but in the dirt below it: its real estate. That’s not a good bellwether for its existence as is.
Macy’s will be moving its flagship store and building a massive tower on the site. Then it may move back in or permanently leave site.
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February 5, 2020
February 5, 2020
Macy’s plans to close 20% of its stores, cut 10% of corporate jobs, and close its Cincinnati headquarters, shares today’s WSJ.
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November 25, 2019
November 25, 2019
Sometimes we are critical of Macy's and the whole Federated chain. But perhaps we should take another look. They give us the legendary fireworks in July and the upcoming Macy's Thanksgiving Day parade. But more recently they along with Tishman Speyer have taken on the incredibly complicated restoration of the old Abraham & Strauss cast-iron facade building in Brooklyn. Perhaps this Thanksgiving we should be more thankful.
From the NY Times:
New Yorkers are all too familiar with the wholesale ...
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November 19, 2019
November 19, 2019
Retailers can be separated in to two groups: those whose are making smart choices like Walmart and Best Buy, and those who are not like Macy’s and Nordstrom. Macy’s stock is down 44% this year.
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November 8, 2019
November 8, 2019
From 2,000 stores to 182 stores—that’s how much Sears, the storied retailer that also owns Kmart, has shrunk in just 5 years. That’s a reduction of 90%.
Remember when people said the retail apocalypse was over-rated, or over? With the currents affecting Nordstrom, Neimans, Barneys, and Macy’s, I believe that we’re still in the midst of the storm. And, even after these other retailers close, the remaining ones will have to spend $1.50 for every $1 they take in to compete against Amazon. So, will...
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September 2, 2019
September 2, 2019
Macy’s bought the retailer Story then closed Story’s flagship location. Hmm. The flagship’s door sign (shown here at 10th Ave. and 19th st. in NYC) says Story has 35 other locations. Notably, those are all inside other Macy’s. Aka: Macy’s likely bought Story to rearrange and/or fill excess space at its other mall locations. Apparently, Story wasn’t appealing enough to have two locations in NYC—which is not a good sign. I predict Macy’s purchase of Story was inflated, and likely a mistake. I ...
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August 22, 2019
August 22, 2019
Stores that offer convenience and deals are winning, shares today’s WSJ. Sales at Walmart, Target, and T.J. Maxx are up while they’re murky at Macy’s, J.C. Penny, and Nordstrom. Just offering deals isn’t enough, nor is just offering next-day delivery. A store is going to have to accept smaller margins via deals and convenience offerings. The alternative is: join Macy’s with its 50% stock drop.
Nordstrom’s sales are down 5% and profit fell about $20m.
Kohl’s, which has a partnership with Amazon, ...
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August 19, 2019
August 19, 2019
Nordstrom stock is down 52% in the last 12 months. Only Macy’s stock performs worse in the S&P 500 retail index.
It’s clear that Nordstrom should not have bought HautLook in 2011 and Trunk Club in 2014. In 2016, Nordstrom wrote down the value of Trunk Club by half of its $350m purchase. That’s $175m in value it desperately needed to spend elsewhere to compete with Amazon. Each million dollar mistake today results tens of millions in lost opportunity next year. Mistakes have exponential ...
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What company in the tabletop industry has invested in a tech company? I don't know of one. I believe our industry should be doing what UPS does and investing in tech--and I'll explain why.
As today's WSJ shares, UPS has a venture capital arm and it has this because smart businesses know that most businesses are becoming more like: software businesses. Therefore, businesses have to ‘buy’ that know-how by investing in a tech company. UPS knows that it doesn't have the internal tech know-how to...
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August 15, 2019
August 15, 2019
The status of some big retailers, per today’s WSJ.
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August 11, 2019
August 11, 2019
Fifty percent of the U.S. book market is controlled by Amazon, while Barnes & Noble has 8%. This book market share split shows that shoppers value convenience and price more than customer service. Anyone that says retail can be helped, saved, or fixed by concentrating on anything but convenience and price is wrong.
For example, an HFN columnist whom I won’t name is often extolling the need to make the in-store shopping experience fun and interesting. Similarly, a market building president ...
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February 27, 2019
February 27, 2019
We post a good deal about Walmart and Amazon. What’s to be made of retailers like Macy’s, Nordstrom, and Neiman’s? It appears they’re just struggling to stay alive, shares today’s WSJ. Macy’s net sales fell 2.5% and it’s even considering new uses for its flagship Herald Square location. One may ask: is a sale of the flagship in the works like what Lord & Taylor did? Macy's could sell the location and lease it back.
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January 5, 2019
January 5, 2019
Amazon may start a bank—and become a competitor to JP Morgan. Imagine if Macy’s or Walmart owned a bank. When a customer makes a large purchase, would that make them more appealing than your business? Financing an engagement ring?
Amazon already offers third-party backed credit cards (Chase), cash cards, and a digital wallet, and it’s exploring adding financial integration with its Alexa platform.
Online spending on Thanksgiving rose 28% over last year shares today’s WSJ.
Stores that have not invested heavily and intelligently in their website will not see this gain. The major issue facing indie stores is they haven’t fixed their online presence—after watching the majors spend billions on their e-commerce operations to get back on track.
There’s a big fork in the road coming: + Indie stores that continue with little web presence will fall off the map. + Indie stores that are part of a ...
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November 19, 2018
November 19, 2018
+ Online holiday sales are projected to grow 15% this season. + Macy’s reports shoppers buy 25% more when picking items up in-store. + Stores are increasingly offering in-store pickup for online purchases. More stores are offeirng checkout via mobile handheld scanners. + Target and Amazon are offering free shipping on many items. Walmart is offering free expediated shipping on orders over $35. Aka: order a new set of dinner plates and fast shipping is free. That’s a compelling offer to counter ...
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October 17, 2018
October 17, 2018
The future is software and its platforms. E.g.:
Airbnb > Hyatt and hotel chains. Kayak > United and airlines. Netflix > MGM and the studios. Amazon > Macy’s and the retailers. Uber > Ford and the automobile companies.
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March 18, 2018
March 18, 2018
Macy’s has a nice wedding registry area.
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