who says closing down unprofitable stores is bad business?? i think not..management is smart, but US consumers is still weak, using up credit card limits,doddfrank bill capped swipe fees has actually help retails a bit.do i consider Macy a bad company ofcourse not. but the issue i have is management should not actively part take part in pumping up stock price. if they excess capital return it as dividends, buybacks dont help long term but mostly help insiders to cash out options at bloated prices, FED manipulating interest rates is same as management manipulating stock price, let the investors do the discovery.glta.
If one is positive of American Retail then M should be their portfolio. Along with Costco, Target, Nordstrom, TJX, and Home Depot. These retailers have developed a plan to serve their market segments well and with some of best available technology support and merchants who aim to focus on regional tastes and trends rather than to do just one national marketing stategy.
Do they do everything right? Of course not, and at varying times shifts in economic, fashion and product trends allows growth or affects performance. Regular followers of retail knows this.
Often policies of retailers affect employees in a negative way, but those decisions are made to benefit the shareholders, or to attract a wider range of customers. A corporation rarely can satisfy shareholders, workers and customers all at the same time, so both share price and sales volume do fluctuate. That is capitalism.
Life is not always fair, and neither is investing.
rwc-- that is a good point,M has done a good Job in sales ,but they are cutting into there profit margins they are already closing 9 stores for under performing . ,that's not a good sign for growth . I also see more companies down sizing as well ,layoffs etc its a snow ball effect. this bubble is going to burst with all the down sizing ,layoffs.We simply have no ( GOOD) Jobs here to support us.Bad times are coming And The 1 billion buyback M is doing right now could be trouble.They should let the stock do its pullback when the market falls, then buy low,instead of high.They are setting themselves up for double trouble at this level