Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

the Department Store Death Spiral

The Death Spiral

Macy’s (M) is dying can Facebook save it?

Small-box concepts like Nordstrom Local and Home Goods also have lower real estate and labor costs. They could easily use such small-box concepts as pickup locations for online orders.

Popup stores; like The Market@Macy’s, are a classic solution for this dilemma. For instance, Macy’s could rent or lease space to pop up store operators.

Macy’s (M) might interest electronics, auto and other brands in pop-up stores. For example, Tesla (NASDAQ: TSLA) operates auto showrooms in some Nordstrom locations.

Obvious brands for Macy’s to tap for pop-ups include Apple (NASDAQ: AAPL), Toyota (NYSE: TM), Ford (NYSE: F), General Motors (NYSE: GM), The Walt Disney Company (NYSE: DIS), Amazon, and clothing makers. A fascinating idea for Macy’s to consider is Amazon Go in Macy’s.

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The Death Spiral

Can Macy’s escape the Department Store Death Spiral?

Macy’s revenues actually grew for the first time in quite a while in 1st Quarter 2018, Stockrow data indicates.
The revenue growth rate was 1.77% which does little make up for losses, but it is far better than the -6.13% negative growth rate reported in 4th Quarter 2017. That means Macy’s delivered an effective revenue growth rate of 7.9%, which is very good.

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