Jennifer Yen’s Post

Nordstrom: What Is the Future for Department Stores? Last week, Macy’s new CEO announced that the chain would close 150 department stores and invest more in its luxury-focused Bloomingdale’s locations, a drastic move aimed at ensuring the company could survive an assault from activist investors, as well as the wider retail apocalypse. Nordstrom’s product mix is closer to Bloomingdale’s than Macy’s, but it faces many of the same problems, including declining foot traffic in some malls and shrinking margins in the always tough wholesale business. The company has dabbled in fixes ranging from small-format stores to closing unprofitable businesses (RIP Nordstrom Canada), and the closure of Macy’s stores may send some customers to rival department stores. But if things don’t turn around soon, the company may need to contemplate some drastic moves of its own, or risk becoming another activist investor target. What do you think is the future for “large” department stores? #departmentstore #macys #nordstrom #luxuryfashion #retailnews #bigboxretail #luxuryretail #toronton #oakville #fashionnews #fashionindustry

Once again a (very) delayed celebratory post! In 2023 we launched on Nordstrom and it was truly one of the best moments of founding and running BONBONWHIMS. ❤️ 2024 will be full of ups & downs, highs & lows -- and let's be real, tons of humbling challenges ahead as we've all been seeing in retail across the board. But I've personally learned that in times of crisis, there's almost always a corner to turn. As usual, would love to connect with any fellow founders out there. My inbox is open! #entrepreneurship #startup #nycbusiness

This article comes out on the heels of a post I made yesterday. Not directly related- but outside of the ever evolving retail landscape and the move to shop online as Matt Garfield stated, department stores such as Macy's have been known to offer a vast amount of categories and sku's and a more than confusing promo pricing strategy. This almost always leads to an overwhelming shopping experience for the customer- especially if you are trying to attract a digitally savvy consumer as a way to evolve. More consumers are choosing quality over quantity and brands and companies that are experts in their specific niche. That niche💡, however, could be anything as long as its claimed, proven, and executed with excellence. ➡️ From a product category, to specific manufacturing processes, to their in store experiences, all the way to offering amazing value at the right time at the right prices ** 😉 aka off price. Cheering Tony Spring and the Macy's team on as they build their bold new chapter. Amy Pocsik Brenda M. Salamone Sally Marrer Meghan Houle, ACC #retailstrategy #retailinnovation

🛍️Macy's, America's sweetheart department store, is closing 150 stores, constituting 30% of its overall footprint. This strategic move is aimed at revamping the troubled retailer's image and aligning with a luxury-focused approach to enhance sales. The closures primarily target underperforming locations as part of the company's effort to fend off activist investors seeking control of its board. Instead, Macy's plans to concentrate on the expansion of its successful higher-end chains, Bloomingdale's and Bluemercury, recognizing the evolving consumer trend towards either budget-friendly or upscale offerings. This shift positions Macy's to better serve the changing market dynamics, with the middle-class consumer base dwindling. Notably, Macy's stock has experienced a significant decline, plummeting by 75% since its peak in 2015. 📉 If Macy's isn't safe from the rapidly changing consumer behavior and middle class buying power, why would you?! If you can't win on tiny margins like Walmart, I would try focus on serving, "the rich" or "the upper class", or what I call them - "the new middle class". 💰 #marketing #macys #retail #consumerbehavior #buyingpower

New CEO of Macy's, Tony Spring, plans to refresh the business with these strategic changes: -Close 30% of underperforming Macy's stores (150 out of 500) within 3 years -Focus on enhancing remaining stores and expanding smaller chains (namely Bloomingdale's & Bluemercury) Enhance customer preferences: -Scale down size of Macy's stores (30,000-50,000 sq ft) -Expand private label offerings -Less cluttered spaces and more attentive service -Optimize clothing presentations and more mannequins Do you think these strategies will be effective? Please share your thoughts! #commericalrealestate #wsj #therealdeal #cre #realestate #finance

how can fit with the building design. the architects will thanks for it :)

Very creative and clever.

Macy's Inc. announced plans to close 150 of its less productive stores over the next three years, which is about one-third of its Macy's locations in the U.S. This move is part of a strategy to fend off acquisition attempts by activist firms Arkhouse Management and Brigade Capital Management. The closures aim to consolidate Macy's presence, possibly allowing employees from closed stores to transfer to nearby locations. Additionally, Macy's plans to open 15 new Bloomingdale’s and 30 Bluemercury locations by 2026 to focus on growth in its higher-end brands. This announcement was made alongside Macy's fourth-quarter results and follows a rejected $5.8 billion buyout offer. The new real estate strategy, unveiled early in CEO Tony Spring’s tenure, is expected to release $600 million to $750 million in assets by 2026. Despite beating fourth-quarter earnings estimates, Macy's forecasted full-year earnings and net sales below analyst expectations, describing 2024 as a year of transition and investment. Macy’s reported a decline in same-store sales across its brands, with the Macy’s namesake brand and Bloomingdale’s experiencing drops, while Bluemercury saw a slight increase. The company's long-term strategy includes adapting to changing consumer preferences for online and off-mall shopping, building on its earlier Polaris strategy aimed at closing 125 stores to stabilize profitability. Macy's emphasizes reallocating resources to its remaining stores and expanding small-format, off-mall locations, highlighting the significant role of real estate in its business model. #Macys #RetailTransformation #StoreClosures #RealEstateStrategy #Bloomingdales #Bluemercury #RetailIndustry #ConsumerTrends #PolarisStrategy #CorporateStrategy

Great move, Bloomingdale’s. A few years ago, I compared Bloomingdale’s and Galeries Lafayette in my master’s thesis. The study—From Paris to New York: A cross-cultural comparison of department stores and their ability to create contextual value during a global pandemic—compares how Bloomingdale’s and Galeries Lafayette approached their Instagram marketing strategies during temporary store closures caused by COVID-19 in Spring 2020. The purpose was to explore how brands can navigate the consumer’s environment and implement successful fashion marketing strategies. Read the summary ➡ https://bit.ly/2Z6clr2 I’m interested to watch what happens next at Bloomingdale’s. #bloomingdales #retail #luxurybrands