Whats Next For Consumers After Macys And Sears Closing?

Published: Jan. 11, 2017, 10:02 p.m.

b'I\\u2019m sure by now you\\u2019ve heard about Macy\\u2019s and Sears closing their doors left and right.\\xa0 First announced last summer, we now have the official list of the 68 Macy\\u2019s stores closing and the grim news of more than 10,000 employees being laid off.
Sears has also found itself in the same boat, mounting losses of 150 Sears and Kmarts to be closed or sold.
American malls, in general, have been struggling to stay relevant and profitable while online shopping becomes more and more prevalent.
Kohl\\u2019s, for example, has been reporting weak in-store sales with many looking to make it up this holiday and failing to do so due to the undeniable convenience of online shopping and delivery.
So, to what extent are Macy\\u2019s and Sears in trouble?\\xa0 How bad is it?\\xa0 And what does that mean to you?
Macy\'s and Sears have triggered losses in their stock prices with underlying problems that have been building for some time.
Macy\'s has consistently been losing money for the past two years, while Sears scraped a new low by losing almost $750 million in one quarter.
Sears was more or less forced to sell its Craftsman Line to Black and Decker for $775 million in an attempt to make up the negative numbers.
Lost revenues will hurt Macy\'s bottom line to the tune of $575 million in the short term, although they expect to save $550 million from the closed stores going forward.
According to their current CEO who is leaving the firm, "We are closing locations that are unproductive or are no longer robust shopping destinations \\u2026 as well as monetizing locations with highly valued real estate\\u201d.
So, what does that mean?\\xa0 It means people are getting laid off and both Macy\\u2019s and Sears are attempting to sell their stores to make up for some of the loss.
Their plans also include investing substantial amounts in their online presence (I wonder what took them so long!) and developing new store concepts, such as expanding \\u201cstand-alones\\u201d like Macy\\u2019s Bluemercury beauty shops.
Now, interestingly, Bloomingdale\'s (also owned by Macy\'s) is doing ok, so they are expecting to open some new international Bloomingdale\'s locations.
Declining Foot Traffic at Macy\'s
Despite Macy\\u2019s ambitious plans for restructuring, CEO Lundgren doesn\\u2019t deny that things aren\\u2019t looking great.\\xa0 As we all know just from going into either Sears or Macy\\u2019s, the stores have been empty and in disarray for some time.\\xa0 The products are disorganized and everything appears to be on clearance. Just walking around to browse is rather unsettling.\\xa0 Even the flagship stores have been neglected.
Growth of Online Retail Eclipses Brick and Mortar Sales
So, what\\u2019s next?\\xa0 Are the day of department stores over, with nothing but doom and gloom when you walk in?
Everyone, including your grandparents, probably know by now that online shopping is a great way to get deals and find less common products (first editions of Harry Potter, anyone?), not to mention avoiding all that parking lot traffic.
Amazon has revolutionized into a magical place where you can buy just about anything you can imagine and that\\u2019s become a fact that is now universally known.\\xa0 The fact that this has long been taking a toll on brick-and-mortar mom and pops and large chains alike should come as no surprise.
Even though many of us don\'t like the idea of hurting local businesses, it\\u2019s now become a struggle between convenience vs tradition.
While I\\u2019m paraphrasing, extensive data backs up the prevailing trends of online sales growth which, unfortunately, comes at a great cost to traditional retailers, who have been closing their doors more and more.\\xa0 It also explains a good deal about why Macy\'s and Sea...'