The document discusses the struggles of many traditional retailers as e-commerce grows. It notes that Macy's and Kohl's both reported poor quarterly results, causing their stock prices and those of many other retailers to fall significantly. The rise of e-commerce is challenging traditional retailers' brick-and-mortar business models. The document examines various analysts' views on retailers' difficulties and strategies to close unprofitable stores and expand their online businesses to try to adapt to the new retail landscape.
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3. RISE AND FALL OF TRADITIONAL RETAIL STORES
• https://seekingalpha.com/article/4072914-traditional-retail-fall-just-begun?ifp=0
• The short answer to that question is that Macy's reported another dismal quarter and brought down the house
of retail across the market. Macy's dropped 15% as of mid-day May 11.
• Kohl's (NYSE: KSS) also reported 1Q17 financial results this morning and while earnings were a positive beat,
revenue was down, investors were not swayed, and KSS dropped 7% by mid-day. In sympathy with Macy's and
KSS, a number of traditional retailer's stock prices also fell including
• Dillard's Inc (NYSE: DDS) down 17%,
• Nordstrom Inc (NYSE: JWN) down 10%,
• J.C. Penney Company Inc (NYSE: JCP) down 7.4%,
• Ascena Retail Group (NASDAQ: ASNA) down 8.8%,
• Tailored Brands (NYSE: TLRD) down 7.9%,
• Francesca Holding Corp (NASDAQ: FRAN) down 7%,
• DSW Inc. (NYSE: DSW) down 9.3%, L Brands Inc (NYSE: LB) down 5.5%,
• Boot Barn Holdings NASDAQ (NASDAQ: BOOT) down 6.4%,
• Stein Mart Inc (NASDAQ: SMRT) down 4.7%, and Shoe Carnival Inc (NASDAQ: SCVL) down 5%. Discounters were
not immune from the storm as Fred's Inc (NASDAQ:
• FRED) and Big Lots Inc (NYSE: BIG) also fell.
• Target (NYSE: TGT) also took a hit.
• About the only big retailer that did not take a significant hit was Walmart (NYSE: WMT).
4. RISE AND FALL OF TRADITIONAL RETAIL STORES
• https://seekingalpha.com/article/4072914-traditional-retail-fall-just-begun?ifp=0
eCommerce role
5. RISE AND FALL OF TRADITIONAL RETAIL STORES
• https://seekingalpha.com/article/4072914-traditional-retail-fall-just-begun?ifp=0
eCommerce role
6. RETAILERS CONTINUE TO STRUGGLE WITH NO SAVING
GRACE IN SIGHT
Source http://www.tampabay.com/news/business/retail/retailers-continue-to-struggle-with-no-saving-
grace-in-sight/2320330
"More and more of these big box retailers just want to get out of their
leases," said Britt Beemer, chairman and CEO of America's Research
Group. "Malls are struggling and fewer people are going to them.
Back in the day when business was good, retailers like Macy's were
forced to open stores in mediocre markets in order to get into the
malls they really wanted to be in. That pressure came from the mall
owners and developers. But there's not enough profit dollars these
days to carry the bad stores anymore."
Justine Griffin – Tampa Bay Times – April 14, 2017
7. AS STORES STRUGGLE, AMAZON CLOSES IN ON TIPPING
POINT FOR APPAREL
• https://www.bostonglobe.com/business/2017/04/30/stores-struggles-amazon-closes-tipping-point-for-apparel/tSAm7NzFjASgY569qEUEHI/story.html
The outlook for physical retailers is grim, the sector roiled by store closings, layoffs,
and bankruptcies. This year, Amazon will surpass Macy’s, which last year announced
it would shut 100 stores, to become the largest seller of apparel in America, by
several analysts’ estimates.
It is looking at ways to keep expanding, too. Amazon is exploring the possibility of
selling custom-fit clothing, tailored to the more precise measurements of
customers, and it has considered acquiring clothing manufacturers to further
expand its presence in the category.
Nick Wingfield NEW YORK TIMES MAY 01, 2017
8. 2 SOLID RETAILERS THAT ARE PROSPERING IN A 'DEATH BY
AMAZON' WORLD
Source - https://seekingalpha.com/article/4071741-2-solid-retailers-prospering-death-amazon-world
TJX Companies and Ross Stores come out as clear
survivors.
9. SUMMARY
• Retailers will continue to look at ways to close down unprofitable
stores
• Retailers will continue to look at ways to expand their eCommerce
footprint
• Major restructuring of large stores including leases and debt
obligations will continue for the short-term