Macy’s weak sales were reported on Thursday and the US department store has now cut its earnings outlook for 2019. Based on the report, Macy’s expects no growth in net sales for fiscal 2018. The company’s previous projection saw Macy’s sales up between 0.3 and 0.7 percent.
Is this the end of big US retail giants?
Macy’s plunging numbers follows a series of US department stores closures in 2018.
The retail apocalypse saw a large number of North American brick-and-mortar retail stores, especially those of large chains close.
The crisis started in 2010 and is expected to continue well into 2019.
Major department stores closures include J. C. Penney, Macy’s, Sears, and Kmart.
Macy’s have said it expects same-store sales to be up approximately 2 percent in fiscal 2018.
This is down from a prior range of between 2.3 to 2.5 percent.
Macy’s CEO Jeff Gennette said in a statement the Christmas season of 2018 had a strong start due to sales over during the Black Friday weekend.
But he added the sales “weakened in the mid-December period and did not return to expected patterns until the week of Christmas.”
The rise of e-commerce, mostly in the form of competition from companies such as Amazon and Walmart are being blamed for the collapse of department stores.
However, research and advisory firm IHL found a silver lining in the retail apocalypse.
IHL reported for every retailer closing stores, two are adding them and two-thirds of the store closings are tied to just 16 stores.
2018 was also a rough year for high street shops in the UK.
More than 93,000 jobs in the retail sector were lost over a period of just 12 months in Britain in 2018.
High street giants include Debenhams, House of Fraser and Marks and Spencer.
Figures from the British Retail Consortium, reported in the Mail on Sunday, showed 3 million people worked in the retail sector in September 2018, down from 3.1m the year before.
And according to accountancy firm PwC 1,123 stores disappeared from 500 of Britain’s high streets in the first six months of 2018.
Source : EXPRESS