American stores are trying to remain relevant in a new era of consumer behavior.
Since consumer preferences have turned into low -price players like Amazon (amzn), Wall Mart (WMT), TJX (TJXRussian stores (Rose), Strong stores in the department face a critical turn.
“The department stores have been created for a completely different customer,” said David Sureez, an analyst at Morning Star.
As Messi (M), Nordstrom (Jwn), And kohl (KSSThey continued to switch, as the brick and mortar department stores have lost sales slowly as younger consumers are looking for technology to players online. Since 2010, the retail value in stores has decreased by 44 %.
Many have turned into STEM losses and as part of their plans to transform them. MACY plans to close 66 unintended stores this year and a total of 150 stores in the next three years, while Kohl has announced its plans to close 27 stores on Saturday. JCPENNEY, now special, has recently shared its plans Close eight stores This year, after several hundreds of stores were closed in 2020, trying to turn them.
The efforts made to stimulate stores in the sections are facing the increasing opposite wind as American consumers begin to show the signs of stress from the high stubborn inflation and higher interest rates. Now, and Definition effects on inflation, Consumer behavior, retail costs will be the analyst of other wild cards to watch.
Kohl CEO said that the estimated spending is restricted to consumers who get less than 100,000 dollars a year, especially for those who get less than 50,000 dollars.
“It is definitely a solid operating environment,” Amanda O’Neill, the global director of S&P, told Yahoo Finance. “Amazon is a winner, Wal -Mart Vene. Costec is a winner … Then, as a retailer, you have brick sites and mortars. Then you also have to be smooth through omnichannel. It is very difficult to do.”
People walk next to the MACY store in Brooklyn after the company announced that it closed the store with more than 60 others on January 13, 2025, in New York City. (Spencer Platt/Getty Emochem) ·Spence Platt via Getty Images
MAKY’s, Nordstrom See Green Shoots, but the challenges remain
The efforts of the transformation in MACY’s, Nordstrom, Kohl’s and other spouses shows the travelers as the stores look forward to returning customers.
MACY is still the largest store in the United States and an important brand channel like Ralph Lauren (RlAnd Tommy Hilviger, Swazz said. But it has weaknesses to confront.
In the fourth quarter, which is very important for retailers in giving the holiday season, MAKY’s The store’s sales generally grew Only 0.2 %. This is compared to Total US retail salesWhich grown 0.7 % month over a month in December. Messi also warned that the profits will be verified with the fisherman of President Trump’s tariff and consumers tend to value.
But while Messi’s attempts to face the increasing challenges, the patience of investors wear thin. The shares decreased by 33 % during the past year, currently trading about $ 13 each, which is much less than the ALL Cash acquisition of the Arkhouse Management and Brigade Capital Management in December 2023, which the company is estimated at $ 24 per share.
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“As long as investors can see light at the end of the tunnel,” said Neil Sonders, Managing Director of Retail Trade at Globaldata, in MAKY’s.
Some of her efforts began to get fruits. The retail seller has witnessed a 1.2 % improvement in store sales at the first 50 stores, as she invested in more marketing, employees and squad.
“Messi is in the re -innovation process,” Sonders said. “There are signs that some of the things they are doing started to work.”
For Nordstrom, the transformation plan will continue in Private markets.
In December, the Nordstrom family, which owns nearly 33 % in the company, cooperated with the company, with Retail and El Purto de LivePool real estate To take the private company. Both will get all the shares suspended in a deal of all the engraving of about $ 6.25 billion.
O’Neill told Yahoo Finance, where the company’s private go to “repair business for long -term growth” can allow the necessary changes without being “under this general scrutiny.”
Nordstrom, which will be separately in its results in the fourth quarter. Nordstrom The store sales themselves jumped by 4.7 %, as sales in Nordstrom Business and Off-PRICE Nordstrom Rack Business increased by 5.3 % and 3.5 %, respectively.
“Nordstrom has succeeded in obtaining trademarks in the direction,” O’Neel said. She noted that these brands and low -price points resonated with Gen Z.
Nordstrom’s decision to transition can become a type of type. Sureez indicated that the departments traded in the year can not be present in the five years to the next ten years. At the same time, it is not believed that Messi or Cole “will be sold at any time soon because the assessments are very low at this stage.”
The CEO of Kohl Ashley Buchaanan, who joined the company in January, is now the CEO of retail stores in three years. Bokanan previously led Michael’s craft stores that were held in particular and worked in Walmart and Sam’s Club.
He soon took action with plans to reduce approximately 10 % of Kohl stores for companies and shutter stores.
Sonders said Cole had previous declines, but “nothing has succeeded.” As more than 65 % shares decreased last year, investors will be keen to see quick results.
However, you cannot expect (Bokanan) miracles overnight, “Sonders added.
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Buchanan will have to reflect many KOHL errors, such as moving away from brands for private brands and as names brands such as Under Armor (DoO’Neill said that it is often excluded in Al -Qasima offers and “disposal of the opening point” for the basic customers.
Dana Tilsi, CEO of Tiltsi Consulting Group, said that Kohl’s is now planning to invest in a variety of groups such as high -end jewelry and small and medium clothes. She is also trying to build “momentum across major growth areas” such as her partnership in Sephora and home décor.
JCPENNEY and ArkansasDDSIt was also working quietly.
JCPENNEY has not reached the results of the fourth quarter yet, but the results of the third quarter were dark, as net sales decreased by 8 % on an annual basis to $ 1.4 billion.
Looking at the participation of Kohl’s and JCPENNEY a similar audience, SWARTZ said that Kohl had benefited if JCPENNEY had gone less than five years ago. However, JCPENNEY pushes forward 1 billion dollars The re -investment plan was announced in 2023.
Meanwhile, Dillard also struggled with the same issues followed by others. But this was not reflected in the stock price, which is trading at more than $ 360, or nearly 20 times from its peers.
Although Sureez did not cover the arrow, it was the company “People had deleted more or less like killing”, as the family owned the majority of stocks.
“When Dillard began improving the margins,” the investors started jumping, “said Sureez.
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Brock Dibalma is a great correspondent in Yahoo Financing. Follow it on x on @Brokedipalma Or send it by email to [email protected].
