All articles tagged with #department stores
Saks Global, owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, filed for bankruptcy protection amid billions in debt, strained vendor relationships, and lagging sales, signaling distress for the luxury department-store sector. Geoffroy van Raemdonck will return as CEO, replacing Richard Baker, who oversaw Saks’ 2024 $2.7 billion acquisition of the Neiman Marcus Group.
Macy's plans to close 14 stores nationwide as part of its strategic efforts to optimize its store footprint and invest in digital growth, despite recent sales momentum and positive customer response.
While younger consumers, especially Gen Z, prefer online shopping and are influenced by social media, baby boomers continue to favor traditional department stores due to perks like generous return policies, personalized service, and in-store experiences, highlighting a generational divide in retail preferences.
American malls are adapting to the decline of department stores by replacing them with experiential offerings such as grocery stores, gyms, and residential apartments, leading to a resurgence in mall traffic. Top-tier malls are thriving with an experiential model, while lower-tier malls are feeling the effects of department store closures more acutely. Mall owners are also capitalizing on omnichannel strategies to bolster retail sales. Despite the success of some malls, there is still an oversupply in the country, leading to a split in the fortunes of malls based on consumer demographics.
Macy's settles a proxy fight with activist investors by appointing two new directors to its board, but the battle for the department store's future continues as it weighs a potential sale or bets on the CEO's vision. The retailer faces pressure from activist investors seeking to take the company private, with concerns about the impact on its retail operations and real estate assets. CEO Tony Spring aims to turn the tide by closing underperforming stores and investing in stronger locations, while the new directors bring retail and real estate expertise to evaluate acquisition bids.
Department stores like Macy's and Kohl's are facing a potential revenue squeeze as the Consumer Financial Protection Bureau's new rule will cap late fees on store-branded credit cards at $8, down from an industry average of around $32, starting this spring. This change is expected to impact retailers' highly profitable business of making money from customers' credit card swipes and the interest or late fees that get tacked onto their unpaid balances. Specialty retailers with store cards, such as Gap, will also feel the pinch, but it'll be most significant at department stores, which are already under pressure due to declining revenue. Retailers are exploring strategies to offset the potential losses, such as increasing APRs or transitioning customers to co-branded cards that can be used for other purchases.
The founding family of Nordstrom Inc. is making a new attempt to take the U.S. department store operator private, seeking interest from private equity firms with the help of investment banks Morgan Stanley and Centerview Partners. This move comes as Nordstrom and other retailers face challenges from consumer spending constraints. The company's shares rose following the news, and the family, which owns about 30% of the company, previously attempted a similar bid in 2017. Macy's Inc. is also facing takeover interest, reflecting ongoing consolidation efforts in the retail sector.
Macy's plans to close about 150 of its namesake department stores, focusing on underperforming locations while investing in better-performing chains like Bloomingdale's and Bluemercury. The company will open new Bloomingdale's and Bluemercury stores in the next few years, with a focus on luxury and beauty products. The changes come as Macy's reported that its namesake stores performed worse than its other chains, and reflect a strategy shift under new CEO Tony Spring.
Tony Spring, the incoming CEO of Macy's, faces the challenge of reviving the struggling 166-year-old retailer, which has lost relevance with younger shoppers and faces competition from online and off-price retailers. Spring, a retail veteran and former CEO of Bloomingdale's, aims to curate strong brands and store designs to win over shoppers, while also contending with inflation-weary consumers, lower employee morale, and activist investors. His task includes revamping Macy's store experience, attracting millennial and Gen Z shoppers, and making tough decisions about the company's real estate footprint.
Tony Spring, the incoming CEO of Macy’s, faces the challenge of revitalizing the struggling department store chain in the midst of an e-commerce dominated retail landscape, while also fending off a potential takeover bid from investor groups. With his extensive experience at Bloomingdale’s, Spring is tasked with infusing Macy’s with new ideas and attracting younger shoppers, as some investors grow impatient with the company's performance. His successful track record at Bloomingdale’s has raised hopes for his ability to bring about positive change at Macy’s.
Macy's rejected a $5.8 billion buyout offer from Arkhouse and Brigade Capital Management, citing financing issues, and is not open to sharing more information or signing a non-disclosure agreement. The company faces an uncertain future as it contemplates its next steps, including potential offers from other buyers or a reevaluation of its real estate assets. With a declining stock price and recent layoffs, Macy's is in the midst of a leadership change and must make strategic decisions to navigate the changing retail landscape and ensure its long-term viability.
Macy's rejects a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management, citing concerns about the financing plan and a lack of compelling value. The department store operator has been making strategic moves to shore up sales, including laying off about 3.5% of its total headcount and closing five locations. The rejection comes as Macy's and other department stores face pressure to increase sales in a post-pandemic world, with some struggling to compete with online rivals and facing challenges from inflation. Macy's has been embracing small-format stores and plans to add up to 30 new locations by fall 2025.
Neiman Marcus CEO Geoffroy van Raemdonck stated that there is "no need" to sell the business amidst rumors of a potential acquisition by Saks Fifth Avenue, emphasizing that the company is profitable and has ample liquidity. While acknowledging the eventual sale by current owners within the next five years, van Raemdonck emphasized that there is currently no process to sell the company. The luxury retailer's recent performance saw a decline in demand, reflecting the volatile nature of the luxury retail environment. Despite speculation of a potential merger with Saks, Neiman Marcus remains focused on executing its strategy and weathering industry shifts.
Shares of Macy's surged over 19% after receiving a $5.8 billion buyout offer from real estate investor Arkhouse Management and asset manager Brigade Capital Management. The offer highlights the potential value of Macy's robust real estate portfolio, estimated to be worth billions of dollars. However, unlocking this value will be challenging due to factors such as rezoning restrictions, high interest rates, and the need for costly conversions. While Macy's retail business is profitable, the bid is lower than the company's asset values, reflecting the difficulties facing retail real estate. The future of Macy's remains uncertain, with possibilities including a private ownership structure, the sale of individual brands, or divestment of profitable assets.
Shares of Macy's surged over 20% after a report revealed that a private investor group, Arkhouse Management and Brigade Capital Management, has made a $5.8 billion buyout offer for the struggling retailer. Macy's, which has been facing fierce competition from online and big box retailers, has closed stores and experienced a decline in sales and net income. The company has not yet responded to the offer, and its CEO is set to retire in 2024.