Bleeding Revenue, Macy's Embraces the Bargain Bin

[unknown]

Makes a lot of sense but does not portend well for clothing resellers

www.slate.com/blogs/business_insider/2015/11/12/macy_s_will_expand_its_new_line_of_discount_stores_so_that_people_will_actually.html

[val2525]

They'd do better to revamp their product line. In the plus sizes, the stuff runs SMALL. As in TINY. As in I can't even wear the 3X most of the time. Yet I wear a 1X in most plus retailers, and 1X or 2X from Kohls/Dillards (depends if womens or jr plus). Macys? Pfftt. Can't even get the 3X over my head. It's a joke.

[Deleted]

I'm not too worried about the impact it'll have on the stuff I sell, but I certainly agree with the article's contention that no one will be going back to full price stores once they start shopping the discount places. I was surprised to read that Kohl's is coming out with a discount store. Seriously? I already view them as a discount store.

[SA]

Eh! Nordstrom has been doing it for quite awhile and they're doing fine.
Bloomingdales also.
As has many other.

I don't think it will affect us all too much. Only 50 stores? That's really not too many. And I just don't view Macy's as a "Luxury" brand/store. Not like they used to be.

Kohl's? I agree. I already view them as a discount store. I have a feeling that they will have more like "clearance centers" where they send all their stuff no one wanted in their stores to begin with.

[thekloset]

I was surprised to read that Kohl's is coming out with a discount store. Seriously? I already view them as a discount store

www.offaisle.com/

I pass it regularly. initial reviews weren't that great (nor was it supposedly as cheap as you'd think, a lot of returns, open box, damaged). I've been meaning to stop just to investigate, but haven't yet--kohls is pretty cheap to begin with.

as for macy's--maybe its me, but I find it a very difficult store to shop in and avoid it like the plague. I do not want to shop by collection--I want to see all white blouses together. I don't see them as particularly fashion forward, their coupons annoy the bejesus out of me with the 9000 exclusions, I often feel that they are pricier than their competitors and I just prefer shopping at other anchors.

[SA]

Funny kloset--their coupons annoy me too.

I remember I was searching in Macy's once and an employee said I should take advantage of their "one day sale" that was happening that day only. My response was that they have about 300 "one day sales" a year. They nodded and said "yeah, I know".

[RetroMonde]

The resulting "race to the bottom" will send retailers into an "economic black hole," where they have completely devalued their own brands and trained customers to never pay full price for anything.

Sound familiar? That race to the bottom price-wise? Those customers are probably the ones sending us BO's regardless of whether we accept them and in spite of the low prices we're usually asking. 

"There is now going to be no end to discounting because all the players must dance as long as the music is playing," Lewis writes. "And it will ultimately drag everything down with it, including brand image, potentially quality and essentially the value of all things."

I was thinking about the brand-image thing while at Costco the other day. It always surprises me to see the clothing brands offered there and I wondered if those brands are then forever doomed to being discount brands. Sorta like the partnerships that designers do with Target. Sure, their brand gets broadcast but at what expense for their image? Good luck selling an Isaac. 

Oregon's Meier & Frank department store chain became Macy's 10 years ago maybe; I think they'd been owned by the May Company for years before the change. I I shopped M&F but don't shop Macy's... the VIBE is different lol. M&F had a very popular 'bargain basement' for decades thatt was home to the stuff that didn't sell at regular price. I remember walking in and seeing a sea of YELLOW clothing and realized then that yellow was a problem color for LOTS of people besides me, lol.

I love talking about retailing & e-tailing; the psychology behind it is fascinating!   

[pyrexandpearls]

I wonder if Kohl's is trying to have it's own version of a "cast off" store instead of selling to other companies. At least in the Midwest the Half of Half store carries a ton of Kohl's brands that didn't sell, were returned, or were damaged.

[titus730]

The huge John Wanamaker store was bought by the May Co. years ago. It became a Lord & Taylor then a Macy's. Upper floors, the ones selling furniture and carpets, were converted into office space for rent. Loved Wanamaker's, don't like Macy's. The quality isn't the same. I think I've been there only once or twice.

With all the commercials screaming sales it's no wonder they're in the red. I think they have sales weekly so there's rarely a need to pay full price.

[unknown]

I wasn't thinking of 'macy's' in particular. I haven't been in a macy's in maybe 30 years and wouldn't know what brands they carry. I was in a kohls once; didn't buy anything.

It's not the brands, it's the 'race to the bottom' like retro picked up on that hit me. It all seems to jive and jives with ebay and clothing (in general, not macy's only) resellers.

[RetroMonde]

I owned a retail store when 9-11 happened; the world changed overnight and retail (shopping) took a hit. Then the recession sped up the downward spiral with retailers having to dump their massive inventories/overstocks. The competitiveness of selling online has sped up the race to the bottom. This is the new normal and the constant erosion of prices sucks. The consumer has had 10+ years of conditioning that makes selling to them a challenge. But most days I still love selling!

[jellybeanscloset412]

This is going to hurt the surplus retailers. Way back when, I used to get pallets of discounted stuff. Macy's was one of the main contributors.If big retailers are keeping their surplus for a discount store that will knock that whole industry out.

I like Macy's. I shop there when I can. They seem to have a great selection of Nike, which my boys live in. Kohl's has two racks, Macy's has a whole section.

If I ever shop Nordy's which is once in a wild blue moon, it is from The Rack.

[somany]

I used to shop Macy's for inventory a lot, but their clearance deals dried up a year or two ago so haven't been shopping there much lately.

Several years ago they used a strategy of stocking brands that "worked" with the locale of the store, so one might carry Eileen Fisher and another one carries Alfred Dunner. I was in the "better" store here in Cincinnati a couple of months ago, looking for bargains on EF. There was not one clearance item for EF, which was very unusual.

Walked around the store and found the Backstage clearance area--right smack dab in the middle of the store. WTH?? Coupons don't work on the stuff. Merchandise was cram packed onto the racks. Regular store stuff was getting mixed in. That was when it was first going in--can't even imagine what it looks like now. Wondering if Macy's hired the guy that almost put Penneys out of business?

[Deleted]

Half of Kohls is already on clearance. The Kohls I go to is parked right next to Marshalls/Home Goods. It's like a discount strip mall with an Aldi's on one corner - all that's missing is a big thrift and it would be discount paradise.

[sunsetpainter]

I've never been in our local Macy's. It's in an area I try to avoid. I do go to Kohl's when they send me a $10 off of a $25 or $30 purchase. I've picked up some nice things for me and to re-sell off the clearance racks, and they will take that coupon for clearance items. HOWEVER, the last few times I went with my coupon, they had removed the 70 - 90% off racks and only left the 30 - 50% off racks, so no bargains. When the coupons expired, the 70 - 90% racks were back.

[val2525]

I thought I was imagining things at my Kohls. Good to know I wasn't, sunset! Mine did that too.

Macy's never should have bought Fields. Too very different corporate philosophys and customer expectations. IMHO.