American traditional retailers are increasingly worried about how long they can last.
US stock market rose for the fifth consecutive trading day on the 10th, but the old department store chainMacy's(Macys) almost created the biggest one-day drop in the company's history. Macy’s share price fell more than 18% in the day, smearing all the company’s share price since 2018 and eventually closing down 17.69%. Following the decline of Macy's, the prices of other traditional retailers also generally fell. US stock retail stocks evaporated a market value of $34 billion in one day.
Macy’s stock price plummeted because of the companyPerformanceIt shows that Macy’s sales were weak at the end of December last year, and the company lowered its full-year sales, profits and grossinterest rateexpected.
Compared with the decline of traditional retailers, online sales in the United States continue to grow at an alarming rate, and online retail sales increased by 19.1% year-on-year during the Christmas to New Year's shopping season. among them,AmazonBecoming the biggest winner, as the largest e-commerce company in the United States, Amazon has been bombarded by US President Trump more than once to squeeze the "thousands of retailers" living space.
Traditional department stores are not much in the future?
Macy’s said that in the past holiday shopping season, the sales of clothing, jewelry and cosmetics were not satisfactory. The company's CEO Jeff Gennette said that in the holiday shopping season at the end of 2018, although the "Black Five" sales performance was good after the Thanksgiving at the end of November, the sales momentum of the company slowed down from mid-December. It was not until the week of Christmas that it returned to the expected pattern. According to data released by Macy's, the same-store sales of the company in November and December last year increased by only 0.7% compared with the same period last year.
At present, the company has lowered its sales growth forecast for FY 2018 from 2.3% to 2.55% to 2.0%.interest rateIt is expected to adjust from “slightly rising” to “slightly falling” and the inventory status is adjusted from “reduced” to “no change”.
Although the overall performance of the US retail industry continues to rise, the latest data released by Macy's is even more worrying that traditional retailers cannot keep up with the trend of consumers accustomed to online shopping. “The rise in retail sales does not drive all participants to rise,” said Neil Saunders, general manager of research firm GlobalData. “The winners and losers of polarization will soon emerge.”
Craig Johnson, president of retail growth and consulting firm Customer Growth Partners, is more pessimistic about the traditional retail industry. He said: "Unless there is a major transformation, traditional department stores are not coming. Many department stores still rely on the model of the mid-1980s. Now consumers want value, entertainment and services. If the economy is good. It’s not a success at the moment, it’s really a problem.”
However, like Macy’s andNordstromTraditional retail giants such as Nordstrom have not given up, and have been investing in e-commerce to try to compete with online retailers. Analysts say they still need to demonstrate their efforts and profitability in this area.
Sears is hard to "renew"
While Macy's tangled its performance, Sears, another large traditional retailer, has been wandering back and forth between bankruptcy and “continuation”, and several times in the “countdown” to escape.
On the 8th, Sears Department Store almost announced its collapse. The company originally planned to inform the bankruptcy court on the 8th that it had rejected the $4.4 billion takeover offer previously proposed by Sears Holdings Chairman Eddie Lampert. The offer cannot cover its bankruptcy expenses. But the judge gave Lambert another chance to allow him to make a new offer again, before the 4 pm local time on the 9th, and submit a deposit of 120 million US dollars to ensure that the company's 425 stores and its supermarket Kmart Can continue to operate.
According to a regulatory document on the 10th, Lambert submitted another $5 billion takeover offer, greatly increasing the possibility that the traditional American department store will continue to operate. Lambert’s new offer will cover more than $600 million in debt since Sears filed for bankruptcy protection on October 15 last year.
Since Sears filed for bankruptcy protection, Lambert has been trying to keep hundreds of stores and Kmart stores open, and some of Sears’ creditors have been calling for the chain to close down, saying that in this case They may recover more losses.
Founded in 1888, Sears Department Store has been the world's largest department store retailer at its most glorious moment, with annual revenues in the United States.GDP1%, however, due to the rapid rise of online retailers, Sears has accumulated losses of more than 11 billion US dollars since 2011.
In 2005, in order to reverse the dilemma, the company decided to appoint a hedge.fundThe founding billionaire Lambert is the CEO. But now it has been shown that Lambert has not been able to turn the tide in the overall decline of the traditional department store industry.
(Article source: First Finance)