Brent Curtis’ Post

The gradual demise of America’s department stores is not just history. It’s a lesson. Macy’s announcement that it’ll close 150 stores—nearly 30% of its total—is the result of a once-great industry in decades of decline. It comes as no big surprise. Their downturn can be blamed on many factors: competition from big box retailers, a shift to online shopping, activist shareholders fighting for control of the company’s board. But the key problem for Macy’s and others is more fundamental: they failed to evolve. While you can make money off a declining business model for years, data shows that once a company runs up against a major stall in its growth, it has less than a 10% chance of ever fully recovering. (See comment for link to research.) Department stores were once the giants of American retail. They reshaped how and where we bought everything, from clothing to appliances to toys to electronics. No longer. This is a wake-up call to those making money off a declining business model. It should push you to deeply rethink how you operate. And to reimagine how you create, distribute and capture value—not only to thrive but to address the transformational challenges of the coming decades. How are you anticipating what’s next and having the flexibility to evolve? #futuresthinking #foresight #innovation #strategy #growth

Is Macy’s ‘Bold New Chapter’ Bold Enough? When Macy’s unveiled a new turnaround plan on Tuesday, it came along with a collective sense of Deja vu. The American department store chain is set to close 150 stores by 2026, bringing its total down to 350 — nearly half of the 650 locations it operated just five years ago. The hope is that shuttering those unproductive stores will allow the retailer to allocate more than $500 million in savings toward more promising areas of improvement, such as small-format stores and online-offline customer service. But Macy’s has been shuttering unprofitable locations for years, well before new CEO Tony Spring unveiled what the retailer has dubbed as its “Bold New Chapter” strategy. As Bloomberg columnist Leticia Miranda noted this week, former Macy’s chief executive Jeff Gennette embarked on not just one, but two nearly identical store optimisation initiatives in his six-year tenure, which ended at the start of this year. And in closing stores, Macy’s is arguably further diminishing its presence in the lives of American consumers, which could ultimately be its death knell. The same trajectory pushed Sears and J.C. Penney into bankruptcy and liquidation.

Undifferentiated Retail is Dead: Interviewed by GlobeSt.com for their article on Macy's Downsizing (including closing of iconic Union Square store in SF, and what it says about Larger Retail Trends. https://lnkd.in/gciY8kBg #retail #economy #realestate #retailrealestate #trends #bigdata

Retail Today / Retail Renaissance: Today Macy’s new CEO Tony Spring comes into his new office. This Macy’s veteran of almost 40 years has been placed with the responsibility of turning around this iconic American Brand. Competition is only getting tougher, #discounters, #offprice , #specialty and #fastfashion. Where does he begin? He’s a “merchant at heart”, that’s a great start. However this challenge is going to test his operational capabilities. Macys current strategy, build new smaller Macy’s in the suburbs, grow their off-price brand #backstage and beauty concept #bluemercury, then slowly look for opportunities under the #bloomingdale label. So where’s the opportunity, stop the bleeding, invest in your Department Stores, challenge your Buying Team to provide exciting product, increase training/staffing at store level and inspire your team by raising expectations. #investinpeople #training #coaching #inspiration #expectations Strike hard and fast, roll the dice and create a partner in Fast-Fashion, don’t leave #GenZ hanging. Most importantly put a little “Herald Square” in every store. Everyone is watching your every move from #customers #associates #vendors and #wallstreet ! Huge Fan Tony! Congratulations and have a fantastic run. #retail #macys #departmentstores #retailindustry #retailstrategy #retailtrends #shoppingexperience #stores #brandexperience #TopRetailExperts

Stepping into the role as Macy's Chief Executive, Tony Spring faces dual challenges: rejuvenating stores and fending off a potential takeover bid from investors. With Bloomingdale's as his background, Spring aims to infuse innovation into Macy's amid shifting consumer trends and digital retail dynamics. The proposed $5.8 billion buyout bid by Arkhouse Management and Brigade Capital Management only intensifies the scrutiny on Spring's leadership. Macy's, with its diverse customer base, must differentiate itself by attracting younger shoppers, especially Gen Z. The threat of activist investors eyeing Macy's real estate assets complicates Spring's agenda, necessitating a holistic strategy beyond traditional cost-cutting measures. As Spring navigates Macy's transformation, stakeholders eagerly await its outcome, underscoring the importance of innovative solutions in today's retail landscape. #RetailLeadership #BusinessTransformation #MacysCEO #RetailInnovation #amsterdamassociates

Are you a European brand opening stores in America? It can be difficult and intimidating to consider how you will oversee a handful of locations from across the pond. That is where I come in. I am Rachel Williamson, the Chief Strategic Retail Advisor at Running Great Stores, my retail consulting practice. Retailers are leveraging my decades of retail expertise to oversee their stores from this side of the pond. Visit our website runninggreatstores.com to learn more or contact me and learn more about this affordable approach to running great stores! #RunningGreatStores #retailexpert #EuropeanBrands #retailconsulting

US department stores' business model is broken. Do you agree? In my conversation with Steve Dennis we talked about why transformations fail and what happens when businesses don't transform and we talked about the example of US department stores. With Macy's announcing the closure of 150 stores and Kohl's shares down almost 15% YTD and almost 50% within the last 5 years. Is there a way out? #retail #retailtransformation #leadersleap

What do recent store openings and closings reveal about the state of the retail industry? Tune in to hear BDO’s David Berliner discuss the uptick in bankruptcy filings and provide an overview of what lies ahead. #Retailers #RetailStrategy

Retail Today / Retail Renaissance: As “big box” stores retreat from our large urban cities, I see opportunity. Over 30 years ago Kmart moved into one of last retail frontiers for real estate, urban core. Miami, New York and other densely populated areas were opened with fantastic success. In 1998, I was able to get approval for a new store in Miami. It was only 50,000 sq ft, less than half the size of a typical Kmart at that time. We had to merchandise it differently and set up operational procedures to operate profitably. That store’s performance was outstanding, driving over $30 million a year. A very challenging store, requiring overnight replenishment teams, eliminating many higher theft categories, expanded loss prevention programs and a “hands on” leadership team. What many retailers did was take a “cookie cutter” approach to operating in this environment. Failure! So as Walmart, Target, CVS, Walgreens and others, abandoned this strategy. Where is the opportunity? I can see Dollar General or even Aldi come up with a concept that provides security, labor opportunities, tax revenue, retail sales and yes, profits. The key think differently. #retail #retailtrends #retailstrategy #retailexperience #shoppingexperience #stores #brickandmortar #brandexperience #merchandising #shoplifting