Christopher Trevis’ Post

For Terry Lundgren, a former CEO of Macy's’s, talk of the possible extinction of department stores is a tale as old as time. Lundgren joined the company, then known as Federated Department Stores, nearly 50 years ago right out of college, his first choice out of a dozen job offers. His roommate could not believe him.“ He said, ‘Aren’t they going to be going out of business?’” Lundgren recalls. “Back then, it was because catalogues were emerging and he thought, ‘Well, isn’t everybody just going to read catalogues and shop that way?’ ”Macy’s survived the catalogue scare, and countless other evolutions in how Americans shopped, from QVC to the rise of e-commerce. But there’s something different today about the cocktail of threats facing Macy’s and other department stores that cater to the middle class, including Kohl's and Nordstrom. No matter how many unprofitable stores they close or innovative retail concepts they try, they keep losing customers, whether to historic online threats like Amazon, newer, more nimble competitors like SHEIN or off-price stalwarts including TJ Maxx & HomeGoods that are better geared towards stretched household budgets. Read the full story by BoF's Cathaleen Chen below.

Despite efforts to close unprofitable stores and innovate, department stores continue to lose customers to online giants like Amazon, agile newcomers like Shein, and budget-friendly off-price retailers such as TJ Maxx. The blunt truth is that most department stores are neither great value for money nor super premium — this makes them very easy to overlook and avoid. They've essentially put themselves in the firing line. To survive, traditional players like Macy's, Kohl's and Nordstrom must, among other things, rethink their entire value proposition by offering unique, fairly priced, and exclusive items that can’t be easily found online. Thanks to The Business of Fashion for including my thoughts in this interesting article on how to save department stores... #retail #retailnews #departmentstores #apparel https://lnkd.in/e2f7fxTp

INNOVATION WON'T SAVE DEPARTMENT STORES. THE RIGHT PRODUCT WILL The Business of Fashion: Mid-market American department stores like Macy's’s, Kohl's’s and Nordstrom need more than new owners and retail formats to win back customers; they must reinvent their entire value proposition with a selection that can compete with online fast fashion and off-price players. Time is running out. KEY INSIGHTS 🍉 Despite efforts to close unprofitable stores and innovate, department stores continue to lose customers to online giants like Amazon, agile newcomers like Shein, and budget-friendly off-price retailers such as TJ Maxx. 🥝 To survive, these retailers must rethink their entire value proposition by offering unique, fairly priced, and exclusive items that can’t be easily found online. 🥞 Despite challenges, their physical presence remains an advantage. For Terry Lundgren, a former CEO of Macy’s, talk of the possible extinction of department stores is a tale as old as time. Lundgren joined the company, then known as Federated Department Stores, nearly 50 years ago right out of college, his first choice out of a dozen job offers. His roommate could not believe him. “He said, ‘Aren’t they going to be going out of business?’” Lundgren recalls. “Back then, it was because catalogues were emerging and he thought, ‘Well, isn’t everybody just going to read catalogues and shop that way?’” Macy’s survived the catalogue scare, and countless other evolutions in how Americans shopped, from QVC to the rise of e-commerce. But there’s something different today about the cocktail of threats facing Macy’s and other department stores that cater to the middle class, including Kohl’s and Nordstrom. No matter how many unprofitable stores they close or innovative retail concepts they try, they keep losing customers, whether to historic online threats like Amazon, newer, more nimble competitors like Shein or off-price stalwarts including TJ Maxx that are better geared towards stretched household budgets. explore more: https://lnkd.in/g5adBm48 #retail #fashion #ai #investmeent #crisis

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 JCPenney into bankruptcy and liquidation. Read the full story below, by BoF's Cathaleen Chen.

This interesting article looks back on Sears and how it navigated many hurdles throughout the years from a peak in 2005 of 3500+ stores between the Kmart and Sears banner across several countries to less than 20 stores today. #Retail #HolidayShopping #Innovation

Famed department-store chain Macy's is downsizing... ... and upgrading. According to The Wall Street Journal, the retailer "will close about 150 underperforming Macy’s stores, or about 30% of its fleet, over the next three years. It will focus on upgrading its remaining 350 Macy’s locations, while also opening smaller versions of its namesake chain and adding more Bloomingdale’s and Bluemercury locations." Why? According to new CEO Tony Spring, it's to ensure the chain doesn't become less relevant to shoppers looking to "shop the way they want." The insightful article offers a few interesting facts: 💡The company says "the 150 Macy’s stores slated for closure represent about a quarter of its gross square footage but less than 10% of sales." 💡Macy's "expects $600 million to $750 million in proceeds from closing stores and distribution centers by the end of 2026." 💡Spring plans to use those millions "to fund the expansion of what he envisions as a more modern Macy’s. That includes smaller stores that aren’t in malls and are easier to shop." 💡Based on research conducted with 60,000 US consumers, Macy's shoppers want "a less-cluttered shop floor and more salespeople to assist them"... ... so the retailer "will be adding sales associates to fitting rooms and shoe departments. It will step up visual displays with more mannequins and evaluate the smallest details such as the optimal way to display certain clothing—hung or folded." More efficient, more relevant stores that are easier to shop and offer consumers a better in-store experience? That's exactly what today's brick-and-mortar retailers need to do to win. 🎯 (And if you're a multi-location retailer that could use some help with this, let's chat...) #brickandmortar #retail #rightsizing #shopperexperience

It's way too early to know if it will be successful, but it's encouraging to see Macy's taking more proactive action rather than trimming around the margins. Of note, the 150 stores are 25% of space, but less than 10% of sales (quick math says the closed stores generate <$15M sales per store, while the 350 continuing stores generate ~$60M). They definitely need to spend in the go-forward locations. I've seen so many posts (not to mention firsthand visits) of old, tired-looking stores with poor shopkeeping that it's practically become a #meme. Macy's has suffered a "massive loss of market share" in the past 5-6 years, as their sales have declined 8% since 2017 while US spending on apparel, home, and beauty products rose by 33%. Surprised there aren't more Bluemercury stores planned. Adding 30 stores over 3 years brings them to ~200 locations, which seems like too little too slowly compared to SEPHORA's 500 and Ulta Beauty's 1,300. https://lnkd.in/e9FvHa7N

Neil Saunders nails it with "Department stores are in the middle, but they're also bland. They're not the places people are going to shop." The rise of department stores gave people a place to shop. Wander the aisle looking for things they need and want. With a poor product mix, a lack of planning with visual merchandising (the grocery equivalent to planograms), and the decline of the mall as a destination it's inevitable. Shopping is typically an exploratory process. It involves researching, browsing, and comparing various products or services. It's about the experience and the journey of finding something, not necessarily the act of purchase. Journeys often have several stops (a quick-serve restaurant, some family staple) along the way. A diversity of choices, like those found in a mall or hypermarket, combining department and grocery (e.g., Walmart, Target Grocery), gives consumers more reason to stay in the store. The store becomes a routine destination. If you're buying, then Macy's is redundant. The products are almost always online and at less cost and hassle. With technology improvements like the endless aisle and retail media networks, Macy's has the opportunity to innovate using what is left of its iconic brand. But will they? What do you think? #retailinnovation

Are you wondering about the future of Macy's? As someone who had a hand in the creation of the #dinershop in #thecellar, I think Macy's CEO Tony Spring has it exactly right. Despite being "built for another era", Macy's is making strategic moves to adapt to the changing retail landscape. As someone who used to work in a "kitchen electrics" buying role, I remember how much of a headache their #onedaysale used to be. However, I believe that Macy's is on the right track with their recent store footprint closures. What's your take on Macy's growth potential? Check out this article and let's discuss. #retailindustry #strategy #businessgrowth

Why is Macy's shutting so many stores? The rise of online, a lack of spending power among its core customers, poor locations, the rise of competitors. Yes, all of those things have played a role. But, as I told the Daily Mail, there is a simpler truth. The biggest issues are the quality of the stores and the product assortment. Both of these things are key to success and have been a problem for a very long time because Macy's just hasn't invested in its proposition. Take the stores, as an example. Macy's has reduced the amount of time and money it spends on visual merchandising, and has cut back on other shop floor staff, so displays are not properly maintained and now do very little to inspire or entice customers to buy. The product assortment is equally lackluster. The customer has to sift through a sea of merchandise that lacks personality and coherence. That requires a level of effort many are just not inclined to make. Ultimately, department stores are responsible for their own decline. They haven't been wiped out by Amazon or anyone else. They're the authors of their own demise, by and large. That they havent performed is mostly because they're hopelessly run – it's as simple as that. Grateful to have my comments included in this article... https://lnkd.in/erUhdnTX #retail #retailnews #departmentstores