Department-Store Woes Worsen

[left-of-center2012]

The optimism for department stores after Macy’s Inc.’s rosier report last week was short-lived, with J.C. Penney Co. and Kohl’s Corp. posting sales declines Tuesday that rattled the industry. Shares of both sank.

Neil Saunders, managing director of GlobalData Retail, said in a note “Some customers are buying less, others have cut out purchases entirely and this has resulted in much softer sales.” Kohl’s slumped as much as 14% and J.C. Penney as much as 9.6% Tuesday. Kohl’s had already dropped 5.2% this year through Monday’s close.

There’s a sense of urgency for J.C. Penney investors, as the company is saddled with nearly $4 billion of debt coming due before the end of 2024.

The cloud of the U.S.-China trade war and the proposal from the Trump administration to place 25% tariffs on an additional $300 billion of goods including apparel also looms over the industry.

https://www.bloomberg.com/news/articles/2019-05-21/department-store-woes-worsen-as-kohl-s-j-c-penney-sales-miss?srnd=premium

[Chin music]

1. What's it going to take?

Pretty soon walmart, and vegetable stands will be the only grocers etc. we can access. Jobs my ass.

[Ohiogal]

2. I know that there's a big market for on line clothes and shoe shopping

But what do people like me do, who prefer to try on these things, if all the stores are closing down? How do you buy shoes without trying them on?

Don't get me wrong, I fully understand that working people don't want to spend their weekends or time off tramping around in malls and stores. I get that. But it seems like there are fewer and fewer stores willing to stay open for people like me, and I can't be alone, since I'm a Baby Boomer.

Ah well .... is that called "progress"?

[Chin music]

3. I like going to malls and stores too.

Everything was broken until trump came to 'fix' it i guess. Gosh, we were all so out of touch, seemingly.

[The Genealogist]

5. If I can buy it in a store I will

Some things are not available locally, but I far prefer to go to a store to buy something I need. Time was, going shopping was a fun thing for a lot of people.

[kimbutgar]

4. But Ross and Marshall's are doing ok

I like them over department stores. I only go to JC Penney.