The big business story right after Xmas was retail giant SEARS / KMART & their announcement that they will be closing up to 120 stores in the upcoming year. Despite the 2% increase in holiday shopping this year, this 100+ year old company struggled.
This years retail results show Macy’s store sales rise while Sears, Kohls and Penneys stagnate or fall.
Why? Perhaps it is the result of what some refer to as a “Secret Weapon” used by Macy’s:
Macy’s same-store sales have been growing each month since early 2010, following the nationwide launch of the “My Macy’s” local customization program.
Analysts say “My Macy’s” is the No. 1 reason for the company’s impressive turnaround, stemming a long string of quarterly sales and profit declines. “My Macy’s” launched nationwide in May 2009, in the troubled aftermath of Macy’s merger with the May department store chain
Looking at Macy’s (M) crowds this holiday season, you wouldn’t know that major department stores have been creeping toward death’s door for 30 years.
Department stores’ share of the retail market fell from over 7% thirty years ago to a low of 2.4% in 2009, says Craig Johnson, president of consulting firm Customer Growth Partners. But last year department stores’ share rose for the first time in 30 years, Johnson says.
CGP estimates its share will rise again this year, to 2.6%. The reason? In a word, says Johnson: Macy’s.
“Macy’s has been increasing its share of the department store sector primarily at Sears (SHLD) and J.C. Penney’s (JCP) expense,” he said.
So what can we learn from all of this? I would like to share some well stated thoughts from a bright young blogger who posted the following article, headlined . . .
Fears for Sears: Lessons from a Dying Brand,
and his first point is really noteworthy to those of us self-employed small business persons . . .
Lesson #1 Don’t Forget to Take Care of the Goose
(check out all three lessons)
Read the whole story at this link: