American department store chains continue to struggle

American department store chains continue to struggle
Shutterstock

Several American department store chains continue to underperform. Both Macy’s and Kohl’s experienced turnover slumps compared to the previous year, even though they both managed to beat analysts’ expectations.

Important period incoming

The chains have tried to steady the ship for quite some time now, but have not succeeded: Macy’s second quarter turnover dropped from 5.9 billion dollars (5 billion euro) in 2016 to 5.6 billion dollars (4.8 billion euro) this year. Like-for-like turnover also slumped 2.8 %. Kohl’s turnover dropped 1 % to 4.14 billion dollars (3.5 billion euro).  

 

Analysts had forecast these drops, but they also point out that the actual harsh times are now incoming. Department store chains really need to take advantage of the upcoming “back to school” and holiday season. Both Macy’s and Kohl’s managed to lower their costs, which contributed to better profit results: Kohl’s profit grew 49 % to 208 million dollars (175 million euro) and Macy’s experienced a 9 million dollar increase to 113 million dollars (almost 100 million euro).

 

Nordstrom is the exception

Nordstrom is the sole exception, because it did manage a turnover increase in the past second quarter. Its increased online customer base was the main reason for that, something other chains have failed to do. Nordstrom’s like-for-like turnover also grew 1.7 %, but its profit slumped 6 % to 110 million dollars (93.6 million euro).

 

Macy’s announced last year that it would shut down 100 stores in order to sell the real estate, something Kohl’s will not do. The latter is contemplating smaller stores instead of just shutting them down. 

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Turnover for 100 largest web shops in Belgium grows 13.5 %

16/11/2017

Turnover for the top 100 web shops in Belgium grew 13.5 % from 3.7 to 4.2 billion euro. Digital sales for food items and household products have increased considerably.

Barbie rejects G.I. Joe & co (for now?)

16/11/2017

Toy giant Mattel has allegedly turned down competitor Hasbro’s bid, according to press agency Reuters’ anonymous sources close to the deal. It is still unclear what the repercussions would be.

Henkel increases full-year turnover forecast

15/11/2017

For the first time ever, Henkel will pass the fifteen billion euro turnover milestone for the first nine months of the year. The company will also increase its turnover and profit forecast on the back of these excellent performances.

Ahold USA trials robot in Giant Food Store

15/11/2017

Ahold USA is currently trialing a robot in a Giant Food Store. Its job is to detect dangers and then ask for assistance. He can also point out empty shelves and check prices.

Singles' Day alters the global retail calendar, even here

14/11/2017

Move aside Christmas turnover, Singles’ Day is the world’s largest shopping holiday – by far. Alibaba generated a 22 billion euro turnover in a single day and even Bol.com took advantage of the day. Are we heading to a new retail calendar?

Avoid long waiting lines at cash registers thanks to Google Maps?

13/11/2017

Google will add a new option to its Maps app on 23 November: users will then be able to assess how much time they will lose at the cash register.

Back to top