Revenge!!!

Check this out -- Sears sales down 7.3% and Macy's sales down 4%. Think it could have anything to do with the facts that they have poor customer service and high prices?

I (we all) better use those gift cards quickly...

Comments

[Erin]

More revenge.

http://consumerist.com/5126243/macys-closing-11-stores

[Erin]

oops. Just noticed that was mentioned in the article anyway.

Oh well.

[Hal]

I find much amusement with your gripes against Macy's--I've never had a problem with them, and actually come away with great deals on some of the things I find.

Of course, I have to say this with the following caveat--I only go there to look for clothes or china/crystal, I generally only look at clearance and steeply discounted stuff, I usually put things on my Macy's charge, and I don't usually go there unless they are running some kind of extra special for the Macy's charge.

So, yeah, we usually make out like bandits there. I think we took care of Christmas presents for 6 people (at least two gifts each) for under $200 there this season by using the guidelines I've given.

I don't profess to be a master at any kind of frugal practice, but I do pretty well at department stores for the reasons I've listed above.

[Miss M]

Did you see the story that Macy's is closing some stores. There are two separate stores within a block of each other in downtown LA. One was a Robinsons-May, when they bought out RB they converted the store to another Macy's. Now they're closing it, I'm not surprised. Why would you have two right next to one another.

[Apex]

Costco sales are down 4%
Target sales are down 4.1%
Limited Brands sales are down 10%
Gap sales are down 14%
Abercrombie & Fitch sales are down 24%
Neiman Marcus sales are down 28%

I think the issue is not related to the issues you have with Sears and Macy's. Those issues may be real, but the issue is that the economy is terrible and everyone cut back spending and the few stores that did slightly better like Walmart also lowered earnings forcasts 10% and their stock dropped 10% today.

Based on the list above Macy's is doing pretty well actually. They did as well as Costco and I would guess you are probably a fan of Costco.

[john]

sears has shitty customer service and that goes a long way for repeat service.so, sears take your card and shove it.i hope you close.

[FMF]

Apex --

Average same store sales dropped 1.7% (according to the article I linked to). Everything below that is worse than average.

Costco's problems were gas-price drop related:

http://www.foxbusiness.com/story/markets/industries/retail/costco-december-store-sales-fell/

[Apex]

FMF,

That's a good point on Costco.

If you look at the losses it would seem that the higher end the store the more they lost in sales. As you would expect in a economic crunch, everyone moves down the food chain. In that context I would still say Macy's did fairly well, as well as Target (Target shoppers probably went to Walmart). I guess my main point was that the results seem to be in line with what you would expect in a market downturn.

One interesting thing I have noticed is McDonalds is doing amazingly well in this environment. I suspect all the Culver's and Apple Bees type buyers are moving down the food chain (pun intended) as well. And what has McDonald's done in response? They have drastically trimmed their dollar menu. No longer can you find items such as the double cheese burger or the 4 piece chicken nuggets on their dollar menu. I would guess that as higher end buyers move down the chain McDonalds no longer needs to offer enticements, they are the last stop on the chain and everyone is coming there and thus in this environment they are actually raising prices (by removing major items from the dollar menu and putting them back at full price).

[FMF]

Apex --

I'd guess that too (more people are moving down overall). Maybe the ultra-rich moved down to Macy's? ;-)

[Apex]

FMF,

I suspect you are correct about "ultra-rich" and Macy's depending on how you define ultra-rich. Neiman Marcus lost 28% so either Neiman customers had to cut the expenses by 28% over all (doubtful) or they went else where. So probably they went and paid prices that are double what they should be instead of triple. :) Hey thats a 33% savings, thats big money. :)