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Macy's struggles go on as it slashes profit, sales outlook
[STARTRIBUNE] Macy's slashed its full-year profit and sales expectations as the department store chain struggles to lure shoppers seemingly in an extended funk.First-quarter income tumbled 40 percent and revenue fell 7.4 percent, sending shares down 10 percent in early trading Wednesday. The report from Macy's, following dismal sales numbers from the Gap earlier in the week, dragged down the entire retail sector in premarket trading. After a brutal holiday shopping season, retailers are muddling through another spending slump that began in mid-March. Macy's had been a stand-out among retailers following the recession. Yet in the last year, the malaise suffered by others seemed to catch up with Macy's. Department stores are face increasing competition from online retailers like Amazon.com. Macy's also has acknowledged that Americans, rather than spending money on clothes and accessories, are going out to restaurants or spas, vacationing, or plowing money into their homes. When they do shop for clothes, increasingly they are doing it at discount stores like T.J. Maxx. Macy's is trying to overhaul its business to counter slumping sales. It opened a group of Macy's Backstage stores last fall to compete with T.J. Maxx and other off-price stores. It's also expanding online also acquired Bluemercury, an upscale beauty and spa company.
Posted by: Fred 2016-05-12 |
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