A week before Christmas at a crowded Target store in Brooklyn, Jay Wangel swiped his debit card, punched in his PIN, and walked away from the cashier with his last minute holiday shopping completed. Wangel uses his debit card several times a day, whereas he only pulls out his credit card about once a month. “I don’t like to carry a balance,” he says. “I struggled to pay off debt for a couple of years.”
This earnings season has been tough for retailers, and for more than one reason. But it has become clear that an industry-wide shift toward e-commerce is still evolving, with some faring well but most facing problems in setting up a smooth and streamlined “omnichannel.” Be it Walmart, JC Penney, Macy’s, or Dillard’s- an overall weak retail environment coupled with a shift toward online sales has impacted quarterly performances for physical retailers.
By Takeover Analyst:With employment figures improving, investors would benefit from gaining exposure to department stores. In theory, retailing is directly correlated with consumer expenditures, but investors tend to act irrationally in times of booms and busts. Thus, retailers have high betas that are capable of generating high risk-adjusted returns. Between Nordstrom (JWN), JCPenney (
Macy’s, Inc. (M) is down over 4.5% as of 11:28AM EDT today, after it missed analysts’ revenue and earnings estimates. However, the news is not as big as the statement from the retailers’ CEO, Terry J. Lundgren:
“We are approaching the second half of 2014 with confident optimism in our business strategies, merchandise assortments and marketing plans, tempered with the reality that many customers still are not feeling comfortable about spending more in an uncertain economic environment.”
Nordstrom is outperforming every other retail company. The company's shares have gained 120% in five years. The company is well-positioned to continue that success in the future, according to Deutsche Bank. The department store has focused on a few aspects of the business to stand out. Here's how Nordstrom is beating retailers from Macy's to T.J. Maxx.
Nordstrom is outperforming every other retail company. The company's shares have gained 110% in five years. The company is well-positioned to continue that success in the future, according to a recent report by Deutsche Bank. The department store has focused on a few aspects of the business to stand out.
Nordstrom, Inc. (JWN) is one of the nation's largest upscale apparel and shoe retailers, with 237 U.S. stores located in 31 states. Nordstrom sells clothing, shoes, and accessories for men, women and children.
Stock Market Performance and Valuation
By Simple Value:Since the recession began in 2008, department and general retailers have toted that they have taken the change in the market as an opportunity to clean up their houses. The mantra has been that the bottom line can remain stable or improve as companies improve their back office and supply chains as well as toughen negotiations with suppliers. In effect, retailers have taken the reduction in the top line throughout the company by pushing back on vendors and squeezing their cost centers.