Franchise News
FOX Business: Dismal Holiday Sales at Macy’s, Kohl’s Spell Gloom for Sector
Department stores are facing uphill battle as consumers turn to online shopping.
After reports of lower-than-expected sales for November and December, Macy’s shares were down 9.6 percent and Kohl’s shares were down 15.2 percent in premarket trading on Thursday. Investors were shocked, according to FOX Business, given that a bump in holiday spending this year was highly anticipated. The National Retail Federation had forecast sales to rise 3.6 percent to $656 billion for 2016 holiday sales.
Amazon, however, experienced their “best ever” holiday season, with more than one billion items shipped worldwide. This is just a strong representation of how consumers are turning to the Internet more and more for shopping.
"(The forecast) reflects the realities of market share losses to off-price retailers such as TJX Cos Inc , Amazon and other online threats, with the pace of store rationalization and monetization just not fast enough," said Deutsche Bank's Paul Trussell.
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
