After the shift to online shopping from retail stores; Shopping Malls and Centers are now suffering and can no longer take the hit. Forcing many stores to close down especially the big chains and clothing stores. People just think malls are too expensive comparing it to online shopping; resulting in a drop in traffic through malls; Macy’s might be one of them considering the effects of Macy’s stock.
Also Read: Why Is Retail Business Dying?
Macy’s are testing and trying various methods to stay over water for the sake of Macy’s stock; some of these stores relying on cutting costs in order to meet their financial goals. By testing out new strategies were one they are lowering the prices; in order to drive traffic to these stores. Another where they mainly rely on driving online shopping traffic; through mobile apps and another where they are using the unproductive real estate; for capital gains investment to increase Macy’s stock.
But Maycys efforts seem to be going to waste and there is no chance of survival; their time is over now. Considering the Macy’s stock dropping 60% since last year; it is just a process of change that they didn’t adapt to, fast enough. Since consumer behavior shopping habits have changed. Investors blame Macy’s stock drop to their cost-cutting; which they have no choice over considering no one ever goes to malls and the expenses of the high lease.
We are not sure how Macy’s will end up considering they might have an unknown strategy; and macy’s stock debt is going up, so overall it can be a profitable investment for some people