Macy's read: Are department stores getting crowded out?


A warning from typically-resilient Macy's (NYSE:M) on consumer spending could send a chill into the retail sector.

CEO Terry Lundgren says that many of the department store's customers aren't feeling comfortable about spending more in an "uncertain" economic environment.

That analysis from a sector bellwether indicates a crowding out effect could be in play as consumers spend freely on housing, automobiles, and travel.

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Comments (7)
  • xamd
    , contributor
    Comments (916) | Send Message
     
    Sorry, someone has to explain this to me further. Crowding out now? When the QE is winding down? It sounds like a whine from a certain type of politician. I am not sure why we should watch out for this now? Not sure why Mr. Macys man made this comment now. Either more background is needed or some more explaining, or more details. Seems like a misguided soundbite. Doesn't seem like big news to report this.
    13 Aug 2014, 09:08 AM Reply Like
  • eXit11
    , contributor
    Comments (837) | Send Message
     
    Spot on XMD. What the hell is he talking about? Sounds like looking for excuses and blaming the whole sector for his own failings.
    13 Aug 2014, 09:35 AM Reply Like
  • James_B
    , contributor
    Comments (232) | Send Message
     
    I agree with the above comments. He's essentially saying that consumers are now spending on other things like housing, cars and vacations rather than retail stores. Housing is relatively flat and families always take vacations during the Summer. It sounds like M is just making an excuse for falling short.
    13 Aug 2014, 10:50 AM Reply Like
  • Trader8877
    , contributor
    Comments (256) | Send Message
     
    Trouble with Macy is that they raised their prices too high even though quality has dropped (clothings). This is my first hand account. I saw this months ago and knew that they would be in trouble. Consumers are now very very price sensitive.
    I think JCP or Kohls won't do that badly if at all.
    13 Aug 2014, 02:48 PM Reply Like
  • Merylldon@yahoo.com
    , contributor
    Comment (1) | Send Message
     
    That is such an interesting comment. We must be shopping at two very different Macy's. I see incredible mark downs and then of course a coupon on top of that. The prices for what I am getting are amazing. I have often said you could not get second hand clothes for these prices.

     

    Of course they carry better merchandise also. Some things are expensive. But if you are a bargain shopper, there is no better value anywhere.
    14 Aug 2014, 09:30 AM Reply Like
  • Trader8877
    , contributor
    Comments (256) | Send Message
     
    @Merylidon

     

    I agree that there are some very good bargains but these are for items that are "tossed out" sales item to attract a small section of shoppers like you and sometimes me too. This very fact actually compounds Macy's problems because they don't make much on this. For higher priced items shoppers are avoiding Macy and going somewhere else. It's a double-barrelled problem if pricing policy does not attract shoppers. (btw thanks for adding as follower and welcome to SA)
    14 Aug 2014, 11:25 AM Reply Like
  • Trader8877
    , contributor
    Comments (256) | Send Message
     
    Breaking News : JCP up after results (ITUS)
    14 Aug 2014, 04:24 PM Reply Like
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