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.
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.”
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 Inc.'s (JWN) shares rallied 11% during after-market trading as the high-end department store topped anaylsts’ expectations for earnings and revenues for the first quarter of its 2014 fiscal year (1QFY14; ended May 3, 2014).
TORONTO — With news from its U.S. parent about lower sales and operating earnings at Sears Canada in the critical holiday quarter, the future looks increasingly grim for the Canadian department store chain as rival Target Canada gets ready to open stores here in two months.
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.
Amazing service and an unrivalled selection of great shoes — that is what the Nordstrom experience will bring to Canada, its president vowed Wednesday.
The tony department store retailer which started as a Seattle shoe store in 1901 is laying the foundation to open its first Canadian store in Calgary in the fall of 2014, sending a recruiter into the market early to look for exceptional retail talent and talk to local schools about the company’s reputation for above-average customer solicitude.