The Broken Department Store Model

Four of the five worst-per­form­ing S&P 500 stocks in the first half of the year were department stores. A few days into the sec­ond half of 2019, there is no in­di­ca­tion that trend is changing.

Nordstrom, which fin­ished June with the du­bi­ous dis­tinc­tion of the S&P 500’s worst per­former, lost 2.3% Tues­day af­ter UBS be­came the lat­est in a string of firms to lower its rat­ing for the stock.

The sell­ing pres­sure spilled over more broadly in the re­tail sec­tor: Macy’s and Kohl’s were also among the five big­gest S&P 500 de­clin­ers in the first half of the year, fell 1.3% and 1.1% respec­tively. Gap Inc.. fills out the roster. And, JCPenney is down 55% for the 12 month period.

The disruption is not about retail in general: Walmart, Target, Costco, Marshall’s, Ross Stores, Home Depot, Lowes and others are showing growth in sales and earnings.

And then there is Amazon

The business model for department stores has been disrupted. And, disruption is the mother of invention. Stay tuned…

From Akane Otani for the Wall Street Journal

The Emperor Has No Clothes

“Inside Walmart, tensions are rising. The company is projecting losses of more than $1 billion for its US e-commerce business this year, on revenue of $22 billion. Walmart does not disclose these figures publicly and declines to comment.”

“That size loss is an eye-popping figure for a company that is used to printing cash and which prides itself on its profitable operations.”

The Rise of Cause Marketing – Podcast

A great pleasure to speak with Ronny Sage of “Shopping Gives” on the important topic of Cause Marketing.

On this episode of The Impact Exchange we welcome David Katz, Executive Vice President & Chief Marketing Officer of Randa Accessories, one of the world’s largest international apparel and accessories companies. David is a thought leader in the retail industry with over 30 years experience. His education in neuroscience lends a unique, scientific approach to understanding the interactions of physiology, psychology, behavioral economics and consumer response.”
“As David transitioned from the clinical field of behavior and response, he realized much of what he learned was also applicable to the understanding of consumer needs. Understanding and leveraging consumers’ response and behavior is literally a $71 Billion industry, under the simple term: Marketing. As the world evolves, consumers’ wants and needs change, causing their purchasing behaviors to shift constantly. In turn, every business attempts to respond in ways that lead to consumer purchase, loyalty and success a.k.a profit.”