Tuesday, January 14, 2020

Brick & Mortar Retail in the Crapper, Department Stores Hardest Hit

While big box stores are apparently doing okay, online retail is putting the boot to traditional department stores. This past holiday season was no respite for brands like Macy's and Kohl's...
JCPenney's sales at stores and websites open for a year fell 7.5% during the holidays compared with last year. Kohl's and Macy's sales dropped slightly, and Macy's said it will close 28 stores. Victoria's Secret sales at stores and websites open for at least a year fell 12% and its parent cut its earnings forecast. 
JCPenney's results raise "continued questions about the chain's long-term viability," Neil Saunders, analyst at GlobalData Retail, said in a note to clients Thursday. "Once loyal customers now avoid the chain and shop elsewhere."
Our local Macy's is a goner. The Super Target across the parking lot likely finished them off. What's ironic is that the Macy's was a freestanding stump of what used to be the enclosed Glendale Mall, which began life as an open-air shopping plaza before being turned into a covered mall in the Sixties, then demolished in '07, replaced with Target and its parking lot.

(The mall had a cluster of penguin sculptures which have migrated to a new home at the Indianapolis Zoo.)