Yahoo mentioned a reason for the fall of FD shares today is the uncertainty ahead as to how consumers are going to view a nationwide Macys visavis regional nameplates.
THE ISSUE IS THAT MACY's IS NOT KNOWN FOR RUNNING A GREAT SHOPPING EXPERIANCE.
*You understaff your stores. It is darn near impossible to find an available salesperson to answer a question.
*When one finds merchandise without salesperson assistance; it is really hard to find an available person to RING the transaction.
*For the most part your housekeeping is really sloppy. Really messy racks, and piles of merchandise strewn in non-arranged sequence.
*Messy unkept fitting rooms with loose paper, pins and loose hangers strewn and not looked after for hours on end.
*Misleading advertising in particular those "ONE-DAY SALES" that have a preview day and and most often extended a day or two. Why not call them for what they are " a THREE DAY SALE-get here EARLY FOR THE BEST SELECTION!" ?
*a RECENT VOID OF INTERESTING NEW STYLES AND TRENDS PRESENTED WITH EYE CATCHING ADVERTISING AND FLOOR DISPLAYS. Please note : that Target is ahead of you on that note!
thanks..please visit your stores and go in unannounced please...you need to see your stores as customers see them.
well I'm used to hitting "F7" before sending to catch spelling - but don't misunderstand me - midpen65 has valid points - macys in total needs to invest more into the selling floor regarding staffing and customer areas - it is embarassing to walk into $27billion dollar company and see stains on the carpet, frayed edges, out dated restrooms and than have to hunt for a selling associate to take your money. Having said that, overall the level of service I do get has been getting better - do I think they are headed for chapter 11 - no, do I think the mgt is incompentant(?), no - what I do think is the stock will take a hit in 2006 during the transition and than begin to make headway in 2007 (not too much different from what others have said) because they will have fully merged have have less distractions, the Home division will have worked out all their kinks and strategies that were in place prior to the merge will begin to show.
I have 2 question for you sophisticated affluent types.
If FD, JCP and other big box and department stores I guess according to your analytical babble would be gang-infested companies?
If you are so affluent why do you shop in these stores and if you don�t shop in them how do you know?
There is not hope, management will be so arrogant to the point that it will only hit them when they BK the shareholders. Nordstroms is thriving off FDs poor management. Too bad, stockholder will lose big time.
Does anyone find that the only people complaining are the people who are from May Co? I know a lot of poeple are losing jobs. Anyone who has followed the Federated board on Yahoo knows, Federated employees rarely posted to complain about their jobs/company/management. About the worse thing the Federated board every got was the "Merry Christmas" people bitching.
However, the May Co message board was always a bitch and moan session. Most people at May have been begging for things to change since Kahn took over from Farrell. Guess what things are changing. Rembember when all the May Co store line mangers were cut two or three summers ago with no warning? I am sorry people are losing jobs because of the merger. I know there are a lot of very hard working May Co people who really care about their jobs and this change is very hard.
As for grips that the best people are not being offered jobs at Federated, I disagree. From what some my HR connections are saying, many May Co managers are turning down jobs. Everyone went through the interview process but when the job offer came they decided to pass on joining the new company. The number I am hearing is about 40% of the offers made are declined.
The next 6 months are going to be the really messy part of the merger. I am sure there are going to be a lot of bumps in the road. However, I hope things will be a lot better by this time next year. I have said before, the merger is about the survival of the department store. The department store needs to evolve or go extinct.
Sorry for the long winded message. Forgive any miss spellings.
To be totally truthful, both Saks and Neiman's have had problems with net profitably over the years. Nordstrom's has probably had the best record of selling high end, having excellent and adequate sales help, and achieving acceptable profits.
None of those three has the same set-up and problems as a full line department store. Generally, they don't have a Home Store. They have a much higher average unit price point, so even their "busy" days aren't as crowded as MAY/FD bis sales.
I agree that it's not entirely about net profit percentages. Growth is also a factor. But when you look at P/E (either ttm or forward) the "E" becomes a pretty important factor.