Market Mad House

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

Macy’s (NYSE: M)

Market Insanity

The Retail Apocalypse is Alive and Well

Giving Walmart workers an extra $8 or $9 a day might have little or no impact on the economy. Walmart clerks can now afford to buy lunch at In-N-Out Burger; rather than at McDonald’s, how does that benefit the wider economy? Much higher wages will be needed for a real economic stimulus.

It remains to be seen if the $1,000 bonus and wage hike will have any effect on Main Street. Giving average families an extra $1,000 to pay off $1,000 of their credit card debt, might not do much for the economy. The average U.S. household now owes $15,654 in credit-card debt, Nerdwallet estimated.

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The Death Spiral

Macy’s is Doomed

The truly frightening statistic is that Macy’s has lost $1.09 billion in revenues during the first three quarters of 2017. Macy’s reported $25.78 billion in revenues at the end of January 2017 and $24.69 billion at the end of October. The revenues shrank by $1.09 billion in just nine months.

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The Death Spiral

Retail Apocalypse Heats up 6,700 stores have closed in 2017

2017 has become the worst year for store closings in the United States possibly since the Great Depression. There is a strong possibility that the actual number of store closings might exceed 10,000. Such a number is possible because analysts like Credit Suisse may not be counting franchisees and mom and pop stores that will also be going under.

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Opportunities

TJX: Department Stores that make money what’s up with that?

By shrewdly taking advantage of the opportunities created by the retail apocalypse, TJX has grown into America’s dominant department store brand. It is liable to remain in that position for a long time to come because of the sheer ineptitude of the competition.

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Grocery Wars

Amazon is Growing but is it Making Money?

Amazon has some value-investment characteristics including a lot of cash and the ability to generate vast amounts of cash on a regular basis. The problem is that unlike companies such as Microsoft, Oracle, Alphabet, and Apple, it cannot keep that cash around.

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The Death Spiral

The Incredibly Shrinking Macy’s

Anybody who doubts the reality of the Great Retail Apocalypse has not taken a look at Macy’s (NYSE: M) financial

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Market Insanity

Would Amazon buy Sears or Nordstrom?

This does not mean Amazon would not buy a department store. I can certainly picture it acquiring Nordstrom (NYSE: JWN); which has a “best in the industry” reputation, and a loyal customer following much like Whole Foods. It also likes to implement next generation retail practices like setting up “storefronts” for online merchants and Tesla dealerships in its stores.

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The Death Spiral

What is killing the Department Stores?

The real culprit in the death of the Great American Department Stores is changing times. Since there is no way to change that investors should stay away from this sector, perhaps far away.

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The Death Spiral

The Bon-Ton Stores will not survive the Retail Apocalypse

The lesson here is clear the department store business model no longer works in America. Investors should stay away from this sector, far, far away if they want to make money. The Bon-Ton Stores’ present reality is the future for brands like Macy’s; and JC Penney’s, unless they can change radically.

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The Death Spiral

The End of Department Stores at Macy’s

We might be witnessing the end of traditional department stores at Macys’ (NYSE: M). Service and employees are being cut in stores as the iconic retailer implements a no-frill shopping model more akin to Walmart than a traditional department store.

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