Macy's Store Closings Creates Winners And Losers
On Thursday, brick-and-mortar retail suffered another heavy blow when Macy’s Inc (NYSE: M) announced it's closing another 100 stores. The Macy’s closures represent about 15 percent of the company’s total number of department stores.
More retail store closures is yet another victory for e-commerce retail giant Amazon.com, Inc. (NASDAQ: AMZN), which has single-handedly taken a huge bite out of the brick-and-mortar retail market.
However, retail stores aren’t quite dead just yet, and the Macy’s store closings could be a positive for some of its top competitors.
“When Sears closes in a mall that we’re in, it’s a net positive for JCPenney. Our sales increase. In some of the most recent Macy’s closures in malls in which we occupy, it’s been a net positive for JCPenney,” Ellison explained.
On the other hand, for companies that derive a substantial amount of revenue from wholesale channels, the Macy’s closings could weigh on sales. For example, Macy’s is responsible for 12.7 percent of Michael Kors Holdings Ltd (NYSE: KORS) sales and 11 percent of Ralph Lauren Corp (NYSE: RL) sales.
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