Amazon Didn’t Kill Macy’s. Macy’s Did.

from recode

It has been a very bad week for some of the country’s biggest department stores, with Macy’s feeling the brunt of it. The mass-market retailer’s stock has dropped 16 percent since it announced disappointing holiday sales results and details on thousands of job cuts on Jan. 4.

Macy’s has said that it has too many stores, in too many underperforming locations. It’s closing 100, and no one should be surprised if that number grows in future years.

Macy’s has also blamed what it calls “changing customer behavior.” That’s code for the rise of Amazon.com and the adoption of e-commerce shopping in general. It’s also the idea that a new generation is spending more money on experiences over physical goods.

But while Amazon has certainly had a hand in Macy’s struggles — and we’ll get back to this in a bit — Macy’s should look within, first, for the cause of its current predicament. Because if not Amazon, someone else would have come along and taken advantage of the complacency that’s been on display inside Macy’s over the last decade.

More here.

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52 Responses to Amazon Didn’t Kill Macy’s. Macy’s Did.

  1. Jacob Hoelting January 18, 2017 at 4:44 pm #

    Amazon.com is one of the biggest known stores in all of the world and thus strongly competing with physical stores, such as Macy’s. With this strong competition, many say that the “death” of Macy’s is due to the rise of Amazon.com and other e-commerce websites. While Amazon.com is a factor as to why stores such as Macy’s are dying, it is not the main cause. Macy’s put the gun in their own mouth. Macy’s is not what it used to be: it used to be a store filled with things that could not be found anywhere else, giving it the leg up on other stores. Now, however, with the rise of e-commerce, Macy’s has nothing special that cannot be bought from the comfort of one’s home. With the rise of technology and personal computers, it has become easier to just click a button, sit back, and wait for a package to be delivered instead of going to a department store that has the same thing. Along with the rise of the internet comes “price-checking”. If the price of an item at Macy’s is pricier than its competitor, Amazon.com, the consumer will choose Amazon.com. Back in Macy’s prime, they could get away with pricier items because of the lack of price-checking, but it seems as if they have not gotten the news and continue in their old habits.

    I cannot even remember the last time I went into Macy’s to actually buy something because I know that I can get a deal on the same product online. There is no differentiation of product making it easier for the consumer to take the easiest route possible, go online, and purchase the item. Even if the item is more expensive online, the problem is Macy’s is not right at the fingertips of the consumer. Macy’s tried to solve this issue by creating an e-commerce of their own in China where their brand is prominent. With Amazon.com being the strong force it is opening the doors to the e-commerce of Macy’s in the United States of America would be a mistake because the money it would take to open in the United States would just be too much of a deficit between profit and cost. American consumers know Amazon.com, know that mostly anything they want is there, and would not be willing to switch to Macy’s.

    At this point there is nothing that can bring Macy’s back to its former glory. There is too much big competition that is easier to access and/or has more items that can be bought. No kind of item diversification can save Macy’s. Not even their announced upscale merchandise will bring back business because the same items can be bought at e-commerce websites or directly at the seller. Not even strongly discounted items can save them because there are stores such as Dillards, Nordstrom Rack and Marshalls. Macy’s has not developed a product that differentiates them from the competition and in turn they have tied their own noose and hung it high.

    After reading this, I have thought more about how technology has change the environment of business forever. Due to the easily accessibility of the internet and e-commerce people, including me, feel it is easier and more beneficial to stay where they are and purchase what they need instead of wasting time and money to drive to a department store. The rise of the internet has more or less put an end to the mall. When thinking about Christmas shopping people hardly go and physically buy an item unless it is last minute: everyone uses e-commerce to buy their goods because of its ease of access. Stores, not just Macy’s, have not caught up with this change and as a result are losing business to these e-commerce sites.

    • Olivia Tarnawska January 20, 2017 at 4:48 pm #

      After reading the article, as well as Jacob’s response, it is evident that he presents very good points. Macy’s is known to advertise their products and store in such a way that makes people want to attain whatever the advertisement is projecting. The rise in demand, before Amazon’s competitive streak, was high. Consumers would pay the price of whatever it is that they desired. If Macy’s happed to be out of stock, a hold or re-stock would be issued. Nowadays, this has changed drastically. When Jacob states “Macy’s has nothing special that cannot be bought from the comfort of one’s home”, he is absolutely correct. It is so much easier to open a laptop, nook, or even your phone and order the same exact product Macy’s offers, but without the hassle of spending time to find the product or waiting in line. Macy’s is very big on offering coupons and sending promotions to, likewise, make their products seem more desirable. They in addition, offer sales to attract as many customers as possible; one being the semi-annual clearance sale.

      Though, in my experience, I have found that regardless if a coupon is used with a purchase at Macy’s, Amazon’s price will ultimately be cheaper. Macy’s over-prices their merchandise so high, that when purchased with a coupon, it may just average out to Amazon’s offer. Thus, this is one of the many reasons what makes shopping on Amazon so attractive. People are able to purchases items much cheaper than they would when buying at a major company, like Macy’s. Furthermore, when shopping on Amazon, you are almost guaranteed to find what you need.

      Macy’s attempt in investing millions of dollars into their e-commerce operation, is a recipe for disaster. Technology is crucial, especially when talking business. Macy’s has entered this area far too late. Amazon, with its many great reviews, is held at a high standard. They are both accommodating with returns as well as purchases and present a well organized customer service. However, Macy’s on the other hand, lack in all these aspects. The store is organized when it comes to categories: men, women, children, petite, plus size, you name it. The disorganization regards to how chaotic merchandise are placed, in addition, to how poorly kept up they are; clothing sizes are mixed and prices are misleading.

      Additionally, Macy’s needs an update, as it has not changed in years. Granted, the company may want to be recognizable to all generations, but it would effectively help them. Macy’s in my opinion, will ultimately run out of business and consumers to buy their goods. Alternative options, like Amazon, will definitely continue to thrive. There are just too many benefits shopping online on Amazon verse shopping at Macy’s.

  2. Daniel Anglim January 18, 2017 at 5:36 pm #

    With the growth of online shopping, brick-and-mortar shops are having difficulty keeping up with the new online shopping craze that has become so abundant. It seems like the days of going to the mall to pick out a new shirt or suit might be coming to an end, unless these stores can do something to entice customers to come in and purchase items. In the article, “Amazon Didn’t Kill Macy’s. Macy’s Did.” by Jason Del Ray, the author has an interesting perspective on the decline of sales in Macy’s stores. Although it is hard to exactly pinpoint the cause of the decline of sales in Macy’s stores, the author contributes Macy’s decline to their inability to adapt to changing times.

    The growth of technology has made it crucial for businesses to stay ahead of competition be thinking of innovative ways to implement technology to increase sales. Currently, “Macy’s is pouring hundreds of millions of dollars into its e-commerce operation.” Unfortunately, Macy’s might be getting into the ecommerce trade to late in the game, with established companies like Amazon already raking in a large majority of sales. Del Ray also says, “For starters, a trip into Macy’s this holiday season felt like a visit to a teenager’s bedroom: In its Paramus, N.J., store, items were strewn everywhere and no useful answers were to be had.” So not only does Macy’s have to compete with online competitors, their in store shops have not been changed to accommodate customers looking for a pleasant shopping experience. Why would anyone want to take the time to shop in a store that looks like chaos, when they can comfortably order anything they want from their home? Also the author brings up an intriguing argument on the products that Macy’s has to offer to customers. He describes Macy’s as “being in the middle” meaning that they do not target a specific group of customers. Macy’s plan to offer a larger variety of products to customers is this “to go up market and down market at the same time.” This sounds like a good idea in concept but with stores like Marshals and Nordstrom Rack dominating the down market, and expensive retailers controlling much of the up market it is hard to see Macy’s fitting into a niche. Again, Macy’s might be coming into an established market to late. Macy’s needs to stick to their roots of targeting middle-class citizens, and construct a plan to get back on track to their sales in 2006 by improving their stores.

    Unless Macy’s can change the downward slump the company has been in for years, they are going to become eliminated by competitors that offer similar products for a reduced price or that are simply more convenient for shopping. The answer for Macy’s is not clear, but what is clear is that the company needs change. They might not be moving in the right direction by hiring CEO Jeffrey Gennette, who has been a long time Macy’s executive. Macy’s should have hired someone outside the company that could have brought a refreshing plan to the forefront. Somethings are inevitable, and it seems like the once powerful Macy’s will no longer be the top company sales of clothing. It would not be a surprise if Macy’s goes out of business within the next fifteen years.

  3. Michelle Pyatnychuk January 18, 2017 at 5:39 pm #

    The first thing that hit me about the article was Del Rey’s description of the Macy’s in Paramus, New Jersey. Being that I am one town over from Paramus and have shopped at that Macy’s numerous times, his description of the store’s disorganization is so true, it is almost comical. Macy’s really has lacked in customer service and quality for a long time so when hearing about the news that it is going digital, during the Macy’s Thanksgiving Day Parade I might add, I was actually more concerned with the brand being able to headline the parade next year than about what it would do to consumer shopping. I still remember walking into Macy’s for the first time and when the article mentioned how the retailer has not changed or updated its store over the past ten years, I realized that it truly has not.

    The main thing that I have realized about the fashion and retail industry is that as this new decade began in 2010, retailers had begun updating their stores whether to follow a more modern, sleek theme or a more rustic, wooden theme in order to keep up with the changing styles of this generation. Take the store Hollister at the Garden State Plaza for example. From when I was 11 to around 17 years old, the store always looked like an Oceanside hut with dim lighting and large screens of “live” footage of the Pacific from a California beach. Walk into the Hollister now; you will find the classic hut set up gone and replaced with clear glass store windows, not much different from Apple, and multicolored lights outlining the “Hollister” sign. The store went from the California-based company it started as to a sleeker and more updated version within six years. The best part? Walk down the hallway and around the corner to the Macy’s and it will, truly be, as if you never left 2006. It is through this lack of interest in innovation and change that has pushed Macy’s back from the profits it could have earned. Passing by the classic Hollister hut layout that still exists in Paramus Park Mall makes you realize just how outdated that setup really was and makes you want to go to the Garden State Plaza just for that reason. To feel like you’re shopping in a place built for this generation.

    The retail game is changing, physical franchise stores are competing with online shopping but it really is Macy’s fault for not working on updating their store setup or online website. Even their brand name design has stayed identical while you have prominent brands such as Reebok changing their logo two years ago in order to become the sleeker, sharper brand that this new generation is in demand for. If Macy’s was to invest in changing their store platform, they would open themselves up to a great spectrum of new consumers because truly, the best way to bring these consumers to you is not by advertising that you’re carrying Ryan Seacrest’s new line of suits but by appealing to the everyday customer that you are selling to. If Macy’s had done that through updating the store and bettering customer experience, instead of investing in Ryan Seacrest, Martha Stewart or the other ridiculous celebrity endorsements that they did, they would be at the top of the clothing franchises and would not have to succumb to selling online like Loehmann’s had to.

  4. Jonathan Cavallone January 18, 2017 at 5:52 pm #

    Being an investor, I frequently keep up to date with the status of America’s biggest companies in hopes of making a few bucks from their stocks. Macy’s, along with many of the other big retail stores such as, best buy, JC penny, and Kohl’s are all struggling during this e-commerce phase that all of America is going through. As the article stated, “…a visit to Macy’s in 2016 felt a lot like a visit to Macy’s in 2006,” and businesses that do not adapt to the changing environment around them typically will not exist for much longer. Macy’s is in desperate need for change. The market cap of their stock fell from 24 billion down to 9 billion, and quite honestly, the only reason investors still may be holding this stock is because of the generous five percent dividend it is currently paying. Down exponentially from their all-time high stock price of $72.31, Macy’s needs to act quickly if they want to preserve their historically successful business. After analyzing Macy’s financials like their income statement and balance sheet, I noticed a very sickly trend. Revenue in 2014 was 11.2 billion compared with 10.5 billion in 2016, and current assets are down from 8.7 billion in 2014 to 7.6 billion in 2016. These are signs of a business that is going down if no changes are made. The article does state that Macy’s is investing into their e-commerce but it might be too little too late as Amazon dominates that category. However, Amazon has faced some competition from companies who were quick to respond to the e-commerce fad such as, eBay and Google. The reason e-commerce gained popularity so quick is because of its suppleness. No more going to the store and not finding the specific sweater you wanted, because Amazon will have it and most likely for a fraction of the price, and best of all, this is all at the comfort of your own home. Being an Under Armor shareholder, I have experienced the wrath Amazon has unleased on retailers. I was recently reading an article about on thestreet.com about how Amazon is going to start giving Nike and Under Armor a run for their money. Amazon is planning to design their own line of athletic clothing, although analyst Sam Stiegel believes, “Just because Amazon sells something, it doesn’t mean they’ll blow the competition out of the water.” There are the big guys in the athletic apparel business for a reason, therefore, they should not fear another competitor. Overall, Amazon has flipped the way American’s shop around and those businesses who are able to adapt to the e-commerce transition will ultimately be successful. Macy’s has many changes to make if they want to stay in the retail game. Obviously they are starting to make changes by hiring a new CEO and investing into their online sector of business, but will it be too little too late? I think Macy’s was slow responding to the e-commerce phase and they will suffer in the short term, but they will get back on their feet.

  5. hannah deppen January 18, 2017 at 7:16 pm #

    In the article, Macy places the blame on online competitors like Amazon, for their decrease in sales. Macy’s faced a shocking realization that consumers are interested in one of a kind items that are easily accessible. It is incredibly hard to have convenience when stores are unorganized. Organization is a key that Macy’s has overlooked and was proven a serious issue in a store in New Jersey. Customers are not willing to look through piles of displaced clothing to find a basic shirt that they could buy somewhere else. Being a shopper myself, I will quickly give up my search for an article of clothing if I cannot find it after a few minutes. Macy’s sales could have increased marginally if there was a code that was implemented in all stores to ensure that everything would be tidy and easy for the consumer to find. Another thing that Macy’s could have done to help themselves, would be adding a new variety of clothing. When I was younger, Macy’s had the stigma that it was for older women, despite having children’s and juniors sections. I never shopped at Macy’s; however, if I were aware of the clothing options that would fit me, then I would have been more inclined to shop there. Especially around the holidays, Macy’s sends out catalogues featuring their new items. Macy’s marketing department could bring in new customers by advertising more frequently. The article also brings up the point that clothing you can buy at Macy’s are similar to clothing that can be found elsewhere. By adding clothing that is up to date with the trends and unique, a new drawl would be brought to Macy’s. It is unfair to single out another company such as Amazon, for their decline in sales. Amazon did studies and discovered that consumers want convenience. They created a new market for consumers, and it was not a market that Macy’s was trying to enter. Online department stores charge high shipping rates, whereas Amazon, keep shipping prices low. A consumer is going to be likely to buy a similar piece of clothing that is cheaper to ship than buying it online at Macy’s where it will be more expensive. There were many of techniques that Macy’s could have tried to keep up with the demands of their customers. Now there are copious options that keep Macy’s from ever getting their number one spot back. It puts technology into perspective. I grew up in a technology based world, yet I often forget how much of an impact that technology can make. Customers no longer want to leave their house to buy something if they do not have to. Macy’s could not keep up with the growing demand for online convenience, which lead to their decline in sales. Many companies are losing their business to the internet, and that is a sad reality for malls and other stores.

  6. Lauren Burbank January 19, 2017 at 12:24 am #

    Over a year ago, at the University of Arizona Global Retailing Conference in Tucson, Terry Lundgren opened with a borrowed quote: “Stores are the New Black.” This was originally said by NYU-stern Marketing Professor Scott Galloway, “who also happens to be one of the world’s experts in digital marketing” (Forbes). Both Lundgren and Galloway believed that Amazon could not take down a brick-and-mortar store, and Galloway even boldly said that Amazon, as well as any other e-commerce business, would need to open retail stores if they wanted to survive. If they were correct, then how did Macy’s get to a point where they are blaming Amazon (amongst other e-commerce businesses) for their struggles? In my opinion, Macy’s is both correct and incorrect for blaming “changing customer behavior” as a source of their downfall.
    It is common sense that for a business to remain successful, they must adapt and meet their consumers’ needs. Blaming consumer behavior is an irresponsible attitude for any business to project. Instead, Macy’s needs to see any changes as opportunities for improvement and innovation. E-commerce has been on the rise for years now, and the demise of other corporations (such as Blockbuster, Kodak, and Sears to name a few) should have tipped Macy’s off well before getting to its current crumbling state. Macy’s is right in their assertion that newer generations are spending differently. According to Goldman Sachs, “Millennials’ affinity for technology is reshaping the retail space. With product information, reviews and price comparisons at their fingertips, Millennials are turning to brands that can offer maximum convenience at the lowest cost.” This is the result of the economy Millennials inherited from the previous generations.
    Millennials are spending more money on their education than any generation prior. Despite being the most educated generation, they are having a difficult time emerging into the job market. “Millennial employment rates plummeted during the financial crisis and still haven’t fully recovered. In addition, more Boomers have opted to stay in the workforce for longer, which may be squeezing Millennials on the career front” (Morgan Stanley). The Baby Boomer generation is at the end of their “peak spending” period, while Millennials are just starting theirs. If Macy’s wants to return to their glory days, they need to acknowledge their new consumer market and provide it with more value. Speaking as a Millennial, I view Macy’s products as “luxuries,” not necessities and I personally need to get the most out of my dollar.
    There are many ways Macy’s could give itself a more appealing makeover and gain the attention of younger consumers. Collaborating with non-competing companies that already gained positive attention from this generation would be a good starting point. For example, Pinterest is a mobile app that is used for ideas and inspiration tied to many goods and services Macy’s has the ability to sell. Macy’s could advertise an entire outfit or room design featuring its products with a price breakdown. When a consumer clicks the “pin,” it could direct them to the Macy’s website to find out which stores carry the items featured in the picture. Even better, give an option to have the order put together and waiting at a chosen store.
    Macy’s should encourage and train their in-store employees to use location specific social media pages as well. For example, Macy’s has many make up counters providing cosmetics services—why not allow them to create a portfolio on Instagram or Facebook with their clients as a portfolio to highlight their talents and draw in more customers? Social media is a very major part of businesses and customer outreach. If Macy’s wants to make a comeback, they need to learn how to connect with the new generation of consumers, and this generation is far more likely to pay attention to social media than to a TV commercial they can fast forward past or a catalog that they didn’t subscribe to.

  7. Thomas Dellisanti January 19, 2017 at 12:14 pm #

    Years ago, before the popularity of online shopping grew, Macy’s, along with other retail stores, were very busy and popular. It was one of the few locations where merchandise was available on a bigger scale, and some time there was spent simply browsing for something that might be appealing. When online shopping became popular, people started to realize that they did not have to deal with browsing a huge store. Instead, they could search for something they liked online, click a button, and have that item delivered directly to their houses. Online shopping is much easier and faster than struggling to find something at Macy’s, and each year, more and more people are realizing this. Macy’s blamed people for wanting an easier way to shop, but instead of providing such a service, it decided to stay the same.
    The problem that Macy’s has is that despite evolving methods of easier purchasing, it stayed the same for many years. The line that resonated with me in the article was that a trip to Macy’s now feels the same as it did 10 years ago. It is trying now to bring modern methods into purchasing their items, but it feels like trying to play catch up instead of gradually evolving over time. Macy’s does not have any incentive to purchase items from their stores anymore. Another example that immediately comes to mind is the closing of Blockbuster stores. There are none of these stores left because services such as Netflix makes watching movies much easier and cheaper. People quickly realized that they did not have to go through the process of going to a store to rent something that might be sold out already.
    I tried thinking about the last time I went to Macy’s, but I could not remember. In fact, I actually forgot that Macy’s existed until I read this article, but the only thing that stands out to me about the store is its, mentioned in the article, very disorganized manner of displaying items. Online shopping is much more organized and neat than searching through 20 different shirts to find one that I like. The fact that the only thing that stands out to me about the store was its disorganization, like the writer of the article said, shows that the stores are not managed well. If I decided to go to a store to purchase clothes, Macy’s would be far from my first choice. Years ago, it could probably get away with disorganization because it knew there were not many stores that were alternatives. Now, with services such as Amazon.com, people have no need to tolerate the disorganized manner of these stores.
    Provided with the information of a $15 billion decrease in sales in the last 10 years, I can predict that Macy’s will be going out of business in the near future. By not evolving with the rise of online shopping, it has essentially plotted its own failure. With the closing of 100 stores happening, many more are sure to follow. Although Macy’s is making an effort now to bring sales up, it is too late for change. People have since moved on from Macy’s, and there is no real incentive to go back there. Any new services that they might offer can be found elsewhere, and since people are already used to sites like Amazon.com, they will probably remain using these sites. I think that Macy’s time has passed, and there is nothing they can do to gain back their former popularity.

  8. Cayla Andican January 19, 2017 at 12:55 pm #

    Macy’s is one of the biggest department stores in the country and recently sales have been plummeting more and more each year. In the article, “Amazon didn’t kill Macy’s. Macy’s did,” written by Jason Del Rey, the author talks about the decrease in sales and putting an idea as to what caused this decrease. Over the years, Macy’s has become more like a TjMaxx or Marshals, and in my opinion, I believe that this would be putting them out of business, not Amazon. Amazon is broadening their options bringing in different clothing styles and more accessories. It is hard for me to believe that Amazon would be the business who would begin to pass Macy’s clothing sales. Online shopping has become more popular and convenient for buyers, however, the department stores sell a different style of clothing.
    Macy’s sells higher end clothing but with much cheaper prices. In comparison to other retail stores, like Lord and Taylor or Bloomingdales, Macy’s sells clothing that would be considered bad quality and out of date. There has been many bad reviews with the clothing and items bought from Macy’s. I have ordered many items of merchandize online and in stores at Macy’s, because it is cheaper than others are. I have found that I have been paying the cheaper prices and receiving clothing that not only is cheaper but also looks cheaper. Macy’s online store has sent me the wrong product multiple times. I have received the wrong items and even items with tears or pieces missing. The clothing one can find at Macy’s can be found at little stores all around, for an even cheaper price. If I need a fancy outfit, I would much rather go to the nearest TjMaxx instead of driving to the mall, because there I can find the same clothing.
    Lord and Taylor and Bloomingdales are constantly being updated and the clothing is not cheap. The clothing there cannot be found elsewhere besides the other high-end stores, this is what makes stores like them unique. The article brings attention to the new concept called Macy’s Backstage. This is an outlet much similar to Nordstrom Rack, selling affordable, off brand clothing. Macy’s said in 2015 that they were going to add more upscale merchandize in hopes to increase their sales, making their store more up to date. Macy’s should start to focus on drawing attention to the new generation. The store is trying to go upmarket and down-market at the same time by adding more discounts and adding higher end clothing to their market.
    The article brought up how in 2006 Macy’s market cap was just about twenty four million dollars, now it is down to nine million. Everything in Macy’s is outdated and old fashioned now. There are many stores that are becoming to top it. To appeal to the younger generation Macy’s needs to change it up a bit. I predict that sometime in the future Macy’s stores everywhere will be going out of business, with over one hundred Macy’s going out of business already it is bound to happen.

  9. Alex Strom January 19, 2017 at 1:28 pm #

    Online shopping is starting to become more and more popular as the years go by. People are starting to realize that with new technologies, it is going to get easier and easier to shop online. Amazon is revolutionizing the game, with the implementation of drones into the field of delivering packages. This idea from Amazon is so unique, and will be very successful if done correctly. If a drone could deliver, a package to your front door step an hour after you hit a button on your phone, why would you go out to the store and get that same item? Amazon will most likely have that same item, but for a cheaper cost. So why would you go out of your way, and leave your comfortable home and waste precious gas that is only getting more and more expensive? It just would not make sense, which is why Macy’s places the blame of their closing down stores on Amazon.
    The article “Amazon Didn’t Kill Mac’s. Macy’s Did.” First tells us about the horrible week that large department stores had; Macy’s being one of the worst from the pack. Macy’s reported bad revenue after the holiday sales, which was followed by thousands of job cuts on January 4th. Since then, Macy’s stock has dropped 16 percent, and continues to slide. Macy’s had to close 100 stores because they were in “underperforming locations”. Macy’s higher-ups have blamed this trend on a “change in customer behavior”. This is implying that their customers do not come to them anymore, because they have amazon now, which is much easier, and at times cheaper to shop from. The article then points out that Macy’s may want to look within themselves first before they try to point their fingers at someone else. They point out that if that is the case, then amazon has essentially replaced a need that the customers had that Macy’s was not able to deliver to them. If they were able to satisfy this customer’s needs, then they would not have to go to amazon to shop in the first place. The author, Jason Del Ray, says that when he went to a Macy’s in New Jersey, and he said he felt like he was in a teenager’s bedroom. He explained how there were clothes thrown everywhere, and states how Macy’s was able to get away with this before e-commerce. Macy’s had their best year in 2006, where they had a market cap of $24 billion, compared to $9 billion in 2016. Macy’s is now trying to fix the problem with a quick fix, by shutting down certain stores and inverting in their online shopping system. They are also making new store concepts, like an e-commerce store in China, and also Macy’s Backstage, which is meant to compete with detail retailers like Marshals and T.J. Maxx. Nonetheless, amazon is having a huge impact on where people shop, and how they shop.
    Amazon is slowly but surely starting to make certain companies obsolete. Many corporations are starting to go out of business simply because they cannot meet the previous quotas that were set. This is not necessarily Amazons fault, but they certainly do not contribute to the betterment of that cooperation. Amazon branches out into so many different fields, which go from grocery shopping to getting a snuggie. With the introduction of drones to the delivering system in Amazon, they will be able to fly over any traffic, and deliver whatever you need from their nearest facility, which probably is not too far in the general picture. With Amazon, you will be able to order groceries online, and have them delivered to you within hours with this new drone system that they are working on. There are also many inventions within Amazon, which include Amazon Prime, Amazon Echo, and Amazon Smile. Amazon Smile is a program within Amazon Prime that allows you to donate 0.5% of the eligible Amazon Smile objects to be donated to a charity of your choice. This shows that Amazon is not all in it for the money, and that they want to see good things being done. Amazon also created their own speaker, which is called Amazon Echo. Amazon prime is a membership that you can sign up for to get free 2-day shipping on certain items that are eligible. Amazon prime is also free for college students, which also shows their cause to see good things be done. Amazon is not out to get you for your money, which is what most companies do. To me, Amazon seems like a friendlier version of a cooperation, which makes me want to shop there more than anywhere else. They like to hook people up with deals, because they have the idea that if we save more money shopping, then we will spend more money doing something else that could also go to them.
    Another thing that I find very interesting about Amazon is there profit margins. They re-invest in themselves, by taking all their profits and putting it back into the company to make it better. They have been doing this for years now, and has proven to be very successful. They are a very smart stock to invest it, if you have the money for it. This is because of their will to improve no matter what. They have begun to branch off into so many other categories other than online shopping. They want to become independent, so that they do not need anyone for anything. They believe that if they do everything themselves, from delivery to the making of cardboard for packages, then they will see maximum profit. This is a very interesting business tactic to have, and has really revolutionized how the game is played. Amazon is still growing, and they have no plans of stopping. They have a great idea in mind, and are on track to achieve their goals of becoming a self-dependent monstrosity.
    Online shopping has really changed the way that people shop, and takes away from what people love in what is referred to as the “shopping experience”. I personally do not enjoy shopping like that, but some people do. Either way, online shopping is becoming more and more popular, and someday may completely overtake shopping in stores.

  10. John Zarro January 19, 2017 at 1:38 pm #

    Almost everyone from the age range of seven to seventy-seven have become familiar with the name brand Macy’s. However, being familiar with the name will not help the company lure in excessive customers on a daily basis. My little cousin who is currently eight years old has probably visited the Amazon.com home page more when looking for ideas to put on his Christmas List to Santa in one day than he has been inside of Macy’s his entire life. Children, teenagers, elders, etc. in present times do not go to Macy’s and say, “I want this,” like they used to. Instead, our generation goes online, types in what they want in a search engine, and instantly view thousands of options. Macy’s, despite the rise of Amazon.com, is at fault for their own downfall due to spreading itself too thing, not modernizing itself, and failing to exploit the online market when at their peak in 2006.
    With the growth of technology and the varieties online stores provide, it just seems plausible that in-store sales would decline. The world is getting lazier and smarter at the same time. The CEO of Apple said in an interview that he would promote the lazy employee over the hard working employee because the lazy one would find an easier and quicker way to do something. Being able to price check items, read reviews, and search for everything one needs from any location imaginable is why the online market is prospering so greatly. While Macy’s in-store sales are declining from mostly lack of business, the so-called, “teenager’s bedroom” aspect of organization could also be problematic and pushing customers away.
    Macy’s as a brand attempts to carry everything in their stores from low class clothes to luxury watches with no real focus. For example, this is similar to when one spreads themselves too thin by trying to accomplish too many tasks at once resulting in diminished or impacted quality. Macy’s should focus on one median in my opinion, whether it be by gender or age group. If Macy’s had a focus group they would be able to really become an empire in such a particular category due to their endless resources, but for now they’re “stuck in the middle.” If Amazon.com did not exist, other e-commerce companies would step up and fill that void in the world leading to the conclusion that Amazon is not to blame.
    Although severely hard, like Nike, Macy’s needs to modernize and evolve. Nike releases new and different sneakers, apparel, and accessories all the time in order to keep up with society. Macy’s has had the same platform since before I can remember with the same logo and same store set up. Similar stores such as Kohl’s has brought the idea of “Kohl’s Cash” into play by baiting customers to return to their stores. The middle school hot spot named Abercrombie evolved from the ripped jean style of 2010 to the modernized jogger pants of 2016. The theme with every business correlating to Darwin’s Theory “survival of the fittest” is that in order to prosper animals/businesses need to adapt and move on. Macy’s needs to adapt and move on because it is still in the past while the market is in the present.
    Even with Amazon gunning down Macy’s sales and customers, Macy’s can only look to itself for the issues. The stores do not have items that cannot be found anywhere else as it used to which made the brand so popular. If Macy’s exploited the online audience earlier they would not be in this predicament. The people inside the Macy’s work force could only hope that the new CEO Jeffrey Gennette will revive them from this dramatic downfall. Overall, I firmly believe that Macy’s and other name brand stores without a sufficient online following will be closing their doors in the near future.

  11. Carl Hakansson January 19, 2017 at 6:18 pm #

    The rise of online shopping has created an entire new industry, and in doing so affected brick-and-mortar shops in a negative fashion. Amazon, for example, does not have a single brick-and-mortar shop. The entirety of its transaction take place online. Macy’s, meanwhile, to many people, is the epitome of a classic department store. Despite this, the days are long gone of heading out to a huge department store to find the latest fashion. It still exists, but people are more likely to shop online, where price comparing is easy, as opposed to visiting a store and buying an overpriced product. Now, this is not to say every single person has ditched the idea of going out to shop. To many, visiting a huge, well-known department store like
    Macy’s is nostalgic in some ways, and presents you with the opportunity to experience a product before you buy it in a way that shopping online can’t provide. For this reason, Amazon cannot be completely to blame for the downfall of Macy’s.

    Macy’s is currently struggling because of its laziness. Upper management is too nonchalant about the quality of their store, and not up to date on its inventory. If Macy’s properly manages its stores – keeping it updated, modern, and relevant – I feel as though sales would not drop. Although many people prefer online shopping, there are plenty of people who would much rather visit a store in person. Just because people are willing does not mean they are ignorant. Visiting a store in person may give some people pleasure, but is never worth the cost of overpaying. Macy’s is currently outdated; selling products that can be bought elsewhere and offering nothing that will convince a customer to enter.

    So, how does Macy’s keep up with its online competition? According to the article, “Macy’s is pouring hundreds of millions of dollars into its e-commerce operations”, in hopes of staying up to date with the changing market. In this, I feel as though Macy’s is taking a good first step in modernizing their business. Businesses that fail to adapt to change fail to stay in business. Simply put, it is careless for a corporation with the reputation of Macy’s to be struggling the way it currently is.

    I agree that Macy’s management is to blame rather than Amazon. The article specifically talks about a Macy’s in Paramus, and being that I am from the area, I have visited that very same Macy’s. Del Ray is correct in his description of the store, as it is not pleasant to visit. Competition should make a business improve themselves in order to keep their customers. In Macy’s case, competition has resulted in a very lax attitude towards updating their inventory and keeping customers happy. The rise of Amazon may have provided Macy’s with competition, but I believe it also presented an opportunity. The whole concept of Amazon is one that Macy’s can easily mimic. By improving their online stores, Macy’s can create a similar appeal that Amazon does. This, along with updating their prices to become more customer-friendly, as well as modernizing and taking care of their brick-and-mortar stores will help Macy’s maintain customer satisfaction. Macy’s reputation alone can keep it in business, but not without modernizing its stores and the way it reaches its customers.

  12. Cameron Collier January 19, 2017 at 6:21 pm #

    1. Amazon.com is one of the most prevalent stores in all of the world and thus strongly competing with important stores, such as Macy’s. With this strong competition, many say that the “death” of Macy’s is due to the rise of Amazon.com and other websites. While Amazon.com is a reason as to why stores such as Macy’s are dying, it is not the main cause. Macy’s is not what it used to be: it used to be a store filled with things that could not be found anywhere else, giving it the leg up on other stores. Now, however, with the rise of e-commerce, Macy’s has nothing special that cannot be bought from the comfort of one’s home. With the rise of technology and personal computers, it has become easier to just click a button, sit back, and wait for a package to be delivered instead of going to a department store that has the same thing. Along with the rise of the internet comes “price-checking”. If the price of an item at Macy’s is pricier than its competitor, Amazon.com, the consumer will choose Amazon.com. Back in Macy’s prime, they could get away with pricier items because of the lack of price-checking, but it seems as if they have not gotten the news and continue in their old habits.
    I cannot even remember the last time I went into Macy’s to actually buy something because I know that I can get a deal on the same product online. There is no differentiation of product making it easier for the consumer to take the easiest route possible, go online, and purchase the item. Even if the item is more expensive online, the problem is Macy’s is not right at the fingertips of the consumer. Macy’s tried to solve this issue by creating an e-commerce of their own in China where their brand is prominent. With Amazon.com being the strong force it is opening the doors to the e-commerce of Macy’s in the United States of America would be a mistake because the money it would take to open in the United States would just be too much of a deficit between profit and cost. American consumers know Amazon.com, know that mostly anything they want is there, and would not be willing to switch to Macy’s.
    After analyzing this article, I have thought more about how technology has change the environment of business forever. Due to the easily accessibility of the internet and e-commerce people, including me, feel it is easier and more beneficial to stay where they are and purchase what they need instead of wasting time and money to drive to a department store. The rise of the internet has more or less put an end to the mall. When thinking about Christmas shopping people hardly go and physically buy an item unless it is last minute: everyone uses e-commerce to buy their goods because of its ease of access. Stores, not just Macy’s, have not caught up with this change and as a result are losing business to these e-commerce sites.

  13. Ryan Appello January 19, 2017 at 9:59 pm #

    The rise of online stores like Amazon have clearly spelt disaster for large retail stores like Macys. To me, this is an obvious trend that was really only a matter of time. In a world where people are becoming more and more dependent on e commerce and the internet in general, it’s almost expected to see stores that rely on customers physically coming to the store to struggle. It makes sense to assume that person would rather stay at home and order their Christmas presents. No one wants to have to deal with going to a Macys or another store to be attacked by ravenous shoppers or to not be able to even find what you’re looking for. This past holiday season, I actually had to go to the Willowbrook mall several times. The only time I went into Macys was to walk through it in order to get into the actual mall. However, seeing the store was a somewhat troubling experience. All of the displays and racks were a literal mess. Shoes were sprawled all over the floor and nothing seemed to be where it was supposed to be.
    However, as the article explains, Amazon and other online stores are not the sole reason why Macys is struggling so much. Macys has virtually been the same store it always has been. And that worked for a while, until the atmosphere of it eventually diminished to shoppers. The main point is that you used to only be able to find most products at Macys. However, now it seems that Macys doesn’t have anything that you couldn’t find somewhere else, possibly for cheaper. As mentioned, the actual appearance of the stores has also fallen off over the years. They literally have not changed over the past decade or so. Consumers have started to notice this and rather than try to find what they are looking for in the jungle of clutter, they just look elsewhere.
    Companies like Amazon have dug into a market of tech savvy people who recognize just how easy it is to order just about anything online. Services like Amazon Prime offer great deals and sometimes even offer free next day shipping, which is definitely preferred over going to a store and having to buy the product yourself.
    Seeing this happen truly is a telltale sign that the landscape of consumerism and the future of retail stores is going through a huge change. Companies like Amazon will continue to take away business from retail stores as it becomes easier and easier to shop online. A factor in this is the age of the consumer. A person that grew up with no online shopping will obviously be more accustomed to going to the store for their shopping. However, the newer generations that have seen the benefits of online shopping will be much more likely to rely solely on it. As companies like Amazon continue to grow, the newer, younger generations will choose to use online shopping over stores like Macys. If this trend continues, I believe that we will eventually see a future where online shopping is the main, or in some cases, only form of shopping people partake in.

  14. Julian Manzano January 20, 2017 at 12:46 am #

    In today’s world, time is a luxury most people do not have. This is why retail stores, like Macy’s, are struggling to stay afloat in this changing pace of the world. Nowadays, many people shop online through channels like Amazon because they do not have to leave their house, they usually get it cheaper, and it only takes a couple days to get. Because of the convenience Amazon and other online stores have to offer, many customers choose to shop through them to save time, money, and a trip to a store they might not really want to go to. The world of shopping is changing, and the inability of retail stores, like Macy’s, to change has led them to many closures and will eventually lead to their downfall.
    Macy’s has put most of the blame of their demise on Amazon calling it “changing customer behavior.” It seems like Amazon and new online outlets are not the only ones to blame though, as Macy should be looking in the mirror first. Macy became complacent, and that is something you cannot do in the business world, especially in the fast-paced world we live in today. Settling for what you have and not striving to be the biggest power in your area will lead to the issue Macy is facing. Companies look Amazon too advantage of Macy’s complacency and took customers by offering more than what Macy could.
    Personally, I like to shop online, it is very convenient, you can find anything you need, and you do not have to drive somewhere and waste time to go get what you need. I think it was more Amazon’s brilliance than it was Macy’s complacency that led to their issues. Macy has been successful for many years and they have just now experienced a new huge competitor in their market that they do not know how to defeat. Amazon offers a lot more than Macy’s can and they know this. They know that customers value their time a lot more than they value a store, so if customers can save money and time by shopping online, they will. With technology on the rise, it can be inferred that Amazon will continue to strive and prosper because of the age of technology we live in today.
    Macy has experienced first-hand what being complacent in a fast moving industry does to your company. They have seen Amazon rise right in front of them and have seen themselves fall significantly because they chose not to act. I feel like it may be too late for Macy to change the outcome of what consumers want and where they will go to get it. It is obvious that Amazon is more popular and, again, will continue to be because of the technological world we live in today. I think if Macy wants to try to limit the damage or recover from this, they should try to collaborate with Amazon and sell some of their merchandise through them. It is not a long-term solution to their problem, but I believe it will at least help “soften the blow” in a way. Amazon seems to be the front-runner of the industry and it does not seem that Macy’s will change that anytime soon.

  15. Rebecca Roome January 20, 2017 at 2:07 am #

    As someone who is a very frequent shopper it does not surprise me to see the downfall of department stores. The clothing industry is constantly developing and brands are always in competition. Places like Macy’s sell very popular brands and very little of their own brand which is becoming detrimental to their sales. Department stores are commonly shopped at by upper and middle class citizens. In recent years, “the percentage of middle class families in the population of every state of the Union shrank between 2000 and 2013” (Pew Charitable Trust). With that being said, people like to save money wherever they can. Typically people will shop around for the brands they want and buy them at the cheapest price possible. Stores like TJ-Maxx and Marshall’s carry the commonly sought after brands for very low prices compared to Macy’s; which makes it a no brainer for the shopper to get it there instead. But what surprises me is store such as Macy’s and Nordstrom would make replica stores of themselves with almost all the same merchandise but cheaper.
    Besides wanting the lowest price, people like to have instant access to all items at one time. The rise in online shopping effects all stores who don’t have a popular online database, or any at all. Going to the mall and walking into every store looking for things to buy has become tedious. The growth of the internet has promoted laziness; why go out to a store when you can simply type it in online? When shopping online a person can see everything the store has to offer with a few clicks of a button. In the article “U.S. Online Retail Sales to Hit $370 Billion by 2017”, the writer speaks on why it so important to invest in online retailing. He writes, “specifically, large retailers are building out omnichannel retail experiences, allowing store associates to “save a sale” by ordering out-of-stock merchandise through online backends” (Indvik). By having associates go into their online stores and order costumers the item they are looking for, it essentially keeps that costumer from going elsewhere to find it.
    I live in Succasunna NJ and their used to be a Macy’s right in the middle of my town. I often overlooked the store always thinking it was too expensive. The few times I went in there it was almost empty, but that could have been because of more reasons than one. The placement of the Macy’s, although right in the center of my town, never seemed like it belonged. It was in a very small mall and almost every store in the mall had gone out of business, it was almost comical. The ironic part I realize now is that a few hundred feet from their once existing store, still stand a Marshall’s. The article also mentions one of their stores in Paramus, N.J. which I had also visited a few times before, “ items were strewn everywhere and no useful answers were to be had” was a statement that seemed spot on to me (Del Rey). The store always seemed as if no one worked there because of its lack of cleanliness. The setup of Macy’s always seemed inconvenient to me as well. In the store there are no designated front registers, rather little ones spread throughout and it never seemed to have someone working them anyway. If I was to say I am surprised with the fall of their store I’d be lying, it seemed inevitable from my personal experiences.
    Daniel Jennings’ Bloglong Only, Deep Value, Contrarian, MomentumSend Message|Market Madhouse. “Do Department Stores Make Money? – Daniel Jennings.” Seeking Alpha. N.p., 25 Sept. 2015. Web. Jan. 2017.
    Indvik, Lauren. “Forrester: U.S. Online Retail Sales to Hit $370 Billion by 2017.” Mashable. Mashable, 12 Mar. 2013. Web. Jan. 2017.

  16. Matthew Radman January 20, 2017 at 11:02 am #

    The competition in retail created by e-commerce companies, namely Amazon, have shaken awake sleeping retail giants such as Macy’s. The impact is visible, and the conveniences and savings offered by online shopping make it hard to compete. While Macy’s does need to get back behind the driver’s wheel, hope is far from lost. Macy’s still has the infrastructure, merchandise, partners, and brand to weather-the-storm that is steadily claiming other large department stores such as Sears; as long as it can restructure and refocus.
    The numbers are hard to look past, Macy’s is planning to cut 10,000 jobs, close 100 locations, and its stock dropped about twenty-seven percent year to date as on January 20, 2017. This dip contrasts starkly with Amazon’s numbers; who’s stock is up over forty percent year to date as on January 20, 2017. While Amazon’s success seems to coincide with the slow bleeding of Macy’s stock value, other factors have influenced their decline other than Amazon and other online shopping sites.
    International tourism accounts for five percent of Macy’s business. Unfortunately, there has been a general drop in tourism as well as the weakening of other currencies compared to the dollar.
    Other large retailers are finding creative ways and angles to keep customers shopping brick-and-mortar. Stores such as Kohl’s and J.C. Penney have integrated themselves well into the digital age, with substantial online presence, in-store pickup, and great deals. Macy’s will benefit from better technology and e-commerce. They have an extensive infrastructure that Amazon lacks. In a society where people make many purchasing decisions quickly and from their smartphones, fashion is an industry where most people care about having a physical store to try on closes in, or at least a physical location to exchange, return, or pick-up merchandise. These conveniences combined with Macy’s push towards faster online shipping as well as leveraging their retail space with innovations such as smart fitting rooms.
    While Macy’s large size caused it to move slowly entering a new era of retail, its timeless brand also makes it widely reputable to those even outside the United States. The majority of Amazon’s massive sales come from within the US borders; the giant hasn’t quite found its footing outside of well developed, technologically advanced countries who do not yet have the infrastructure or trust for e-commerce to take over as broadly as in the US.
    The battle between e-commerce and brick-and-mortar will be an interesting display of innovation that is refreshing in a space so lacking it for so long. While it is easy to assume that large department stores will slowly bleed into the pages of history books, the truth is that brick-and-mortar is here to stay, just not in the same form. As Amazon inflates to saturate much of overall shopping in the US, even it acknowledges and tries to emulate the experience allowed with brick-and-mortar. Recently, Amazon announced Amazon Go, a line-free grocery store in Seattle. They have also opened many bookstores, ironically for those who remember how the Kindle threatened to kill Barnes and Noble. While the rise of Amazon has wounded Macy’s, it is far from dead in the water. With a restructuring, downsizing, and perhaps some cues from its fellow retails, Macy’s has a chance to claim its place in a digital world.

  17. Jazmine Piperato January 20, 2017 at 11:14 am #

    This article puts an emphasis on how Macy’s is blaming online shopping sites, like Amazon for its decline in business, but it should actually recognize the fault they have had in their own failure.
    I personally have never been a big fan of large department stores, such as Macy’s because of its unappealing commotion, unorganized departments and overwhelming amount of merchandise. It is also no secret that Macy’s is always filthy. It’s completely understandable that the combination of a large store, with a lot of product, and frequent costumers can get messy fast. However, there is no excuse for it to be that way at all hours of the day. You almost wonder, “Do they even have any employees?”
    Online shopping has become a phenomenon over the course of the computer generation. It is so much easier to type into the search bar “shirt with red heart”, than it is to go searching around Macy’s for an hour looking for one. Anyone who has been to a Macy’s or any department store for that matter, can agree that it takes longer to find an employee to help you than it does to pick out the shirt, try it on and purchase it. Some may argue that going in and feeling the merchandise and trying it on is much more appealing than the click of a button, but those people are probably old. The truth is, millennia’s do not care about sentimental things, and we are perfectly comfortable with the click of the button, receive in the mail a few days later technique.
    Macy’s is also never adopting new fashion or new companies. This is a big problem. Walking into the men’s department at Macy’s to see a huge display for Ralph Lauren does not have the same effect as it used to. I personally relate to the makeup department as I do makeup on the side. I am always disappointed when shopping in the makeup department because they never have any new products and they stick to high-end makeup brands like Estée Lauder and Lancôme that are not very popular among our generation. They seem to never switch up their merchandise to move forward with the world around them. It just seems like they are comfortable, which is so poor for business in this day and age.
    As also mentioned in Del Rey’s article, another huge let down for Macy’s is the lack of progress in their stores. The storefront looks exactly the same as it did a decade ago. Perhaps the fastest and most progressive decade in history, and Macy’s looks the same as it did in 2006. That is a major problem when it comes to appealing to the new age. We do not like outdated things and that’s primarily because of out over exposure via online. We are constantly exposed to the newest things, newest ideas and coolest concepts for stores. How are we supposed to go from seeing the newest apple store on Instagram to walking into Macys? I assure you, there was more enthusiasm double tapping the apple photo.
    All of these factors tie into the breakdown of Macy’s business. They cannot afford to put the failures of their success onto online companies when the problem lies in their store all along. As I mentioned before, there is still an audience to appeal to when it comes to in store shopping: the baby boomers. There is no reason why they shouldn’t improve their locations to appeal to the long lasting clientele that still worship the Macy’s on 34th street.

  18. Andrew Imbesi January 20, 2017 at 1:17 pm #

    The rise in technology has surged rapidly and left Macy’s behind. Online shopping has provided customers access to more resources, quick efficient shipping, and extremely cheap prices. Macy’s has referred to this change in business as “changing customer behavior” (Del Rev), an accurate term to describe the shift in physical shopping to online shopping. Instead of coming up with excuses, Macy’s should do something more to save its business. It is no surprise that Macy’s continues to struggle as the digital world continues to expand. For example, Amazon quickly became one of the more powerful resources to serve many humans in everyday life due to its accessibility, inventory, and relatively cheap prices. Regardless of Amazon’s quick rise to the top, there is more to a business than its online marketplace. Although Amazon is primarily online, Amazon has developed a record of manufacturing and distributing its own technology such as a Kindle. The author argues there are many components that contribute to Macy’s downfall, not specifically online shopping.
    It is understandable Macy’s would blame another company for its failures. Falling short of success is never pleasing. However, Macy’s is right; the online marketplace does have heavy influence in their dramatic shift in sales but Macy’s only has itself to blame. The online marketplace is not the only issue Macy’s needs to address. Macy’s may have lost absolute and comparative advantages to the online marketplace but ultimately lost motivation to maintain a well-rounded business. In the article, the author compares a New Jersey Macy’s cleanliness and service to a messy teenager’s room. Like a teenager’s room, there is no valid explanation as to why the room is disorganized. Additionally, like some of the items sitting out in a teenager’s room, not all of them are useful. Macy’s catalogue of products along with their store appearance have slowly become less attractive. Their stores have looked the same for years so their units are easily competitive to the inventories of other companies. This reputation makes it difficult for Macy’s to expand their product inventory since they are reputable for specific products. Unlike Amazon, Macy’s is not known to have warehouses full of everything; their store is simply outmatched by the inventories of digitally advanced companies. Macy’s has struggled to maintain an analog store in a digital world due to their struggle to adapt to a digital world.
    Macy’s has developed few strategies with optimistic goals to save their business. Macy’s plans to expand their online marketplace in order to compete with companies such as Amazon. Unfortunately, this is their only digital goal. Macy’s also plans to continue improving their stores by providing new lines of clothing. The problem with offering more products in store is that there are plenty of more options online. People will be hesitant to shop at a Macy’s due to the fact people can shop for the same products at the luxury of the internet. Like David Cameron, Terry Lundgren does not have the answers to save Macy’s. It is probably best that he is stepping down to give another person a shot of bringing the company to its full potential. Given that the digital marketplace is quickly taking control, I hope that the fresh start of their new CEO will bring more business to Macy’s.

  19. Juan Landin January 20, 2017 at 1:44 pm #

    Del Ray’s article said it perfectly; Macy’s business model was very similar to the one from ten years. So, it was only a matter of time until they came crashing down and realized that they need to update their business strategies in order to keep up with the change in the consumer’s demands. As we’ve seen with many other companies and products, if you don’t tailor your business to the needs and wants of the consumer then you will eventually become extinct.
    Although Macy’s has contributed to their own downfall, I give more of the blame to Amazon than Del Ray does. I believe that Amazon has taken over the market and has changed the way that consumers want their products/services. People these days want their products fast and easy and Amazon gives them that option. Who wants to drive all the way to a store, waste gas, and buy something when you can get it online and it’s shipped right to your front door. Also online many times the product is cheaper. This is also the case when people do go to stores to buy products. People want to be able to find products faster and easier because we have become conditioned to get what we want when we want it. When the store you go to is very disorganized and you have to search for what you want this only disinterests the consumer and thus drives away profit. According to the article, “a trip into Macy’s this holiday season felt like a visit to a teenager’s bedroom: In its Paramus, N.J., store, items were strewn everywhere and no useful answers were to be had.” If you walked into a store looking to buy clothes but saw it all disorganized and had to actually try to find your size, you would become frustrated and leave. This has become the case because of the emergence of these fast, cheap, and easy services such as Amazon, Ebay, Newegg, Overstock and many others.
    Macy’s also didn’t help themselves by not evolving with the times. Back in 2006 when it was bringing in $24 billion they most likely believed that they needed to build off of their success quickly and began to expand by opening more stores. Instead of trying to keep their business plans up to date with the changing market they were so focused on growth until they realized how far behind they were. They essentially spread themselves too thin and the more they expanded the less quality was available at each store. As the article stated maybe back then people wouldn’t be too scared off by disorganized clothes or having to look for clothes but today that is not the case. A perfect example of this is the rise of streaming and the downfall of video stores. Back then Blockbuster was successful company who offered people movies at a cheap price. It was fast and easy for the time but then companies came along who offered an even faster, easier and cheaper way. These companies were Netflix, Redbox, etc. At first these companies offered quick DVD rentals for a low price but then they eventually evolved to streaming as the market became more tech oriented. Blockbuster did not do this until it was too late. By the time they started DVD by mail services Netflix had already taken a huge part of that market. Then Blockbuster never made it to introducing a streaming service.
    According to the article Macy’s has been trying to help themselves by building off of their success in China by improving their online operation but they will need to do much more than that. They need to vastly improve their online operations here to meet with today’s standards if they wish to compete in the market. Macy’s also needs to revamp their business models for their stores because they still need the profit from in store products to be a competitor. Overall, I believe it is not too late for Macy’s to save themselves but they need to act fast, or end up like Blockbuster.

  20. Guy Barbano January 20, 2017 at 2:49 pm #

    Ever since I can remember I have gone to Macy’s to shop. Over the years though anyone who shops at Macy’s can see that they were sliding. The internet and shopping though is not to blame for their recent decline. Macy’s may advertise many deals and their signature “one day sales” but many of the items they sell are marked up a very large amount. Which is what turns many shoppers to the internet to shop. Everyone is looking for the best deal to try and save as much as possible in today’s world. With all the online sales and free shipping offers people find it more convenient to shop online. Another plus being how in store they may not have the color or your size, but online they almost always have exactly what you want. I would not say though Macy’s killed Macy’s because in reality of it I think almost everyone saw this coming to malls and department stores around the country and possibly the world. The internet gets bigger and better every day. Soon no one will even know what a mall or department store is. As with my generation not even knowing what a Walkman is, and honestly I still don’t know. This evolution of no more in store shopping takes away the idea of going to a store with the face to face interaction you must have with someone where instead online you do not have to feel the pressure of trying something on or having to interact with a sales person to find something. It makes the whole process somewhat a lot easier for people. Another large point made in this article is the drop in sales for holiday shopping. As the article says in the beginning, “The mass-market retailer’s stock has dropped 16 percent since it announced disappointing holiday sales results” the reason for this is simple. Black Friday is a day full of mayhem and for a while it got worse and worse where I am from. With people always getting trampled and hurt. Now though it seems to be a thing of the past with online shopping. No one has to go out into the store and fight off everyone trying to buy the same thing as you. You can just buy the same products online at the same price or possibly a different price, with some stores trying to do the “in store only price” but if you wait it out you can possibly get it even cheaper during the “cyber Monday” sales the following Monday after. Another large issue Macy’s has that many comments discussed is the organization of Macy’s. The article talked about the organization of one of their stores in Paramus, NJ. Organization is a huge factor when shopping at a store. Who wants to search through piles of clothes and sections for a half hour when it could only take 5 minutes if everything was in the right spot? No one that is why many turn to online shopping because unlike in-store everything is categorized and easily accessible to the shopper. Amazon and online large online retailers should not be to blame for the downfall of Macy’s or department stores the blame is on themselves for not trying to keep up with the times and try and keep shoppers in store or even on their online store.

  21. George Tannous January 20, 2017 at 2:50 pm #

    Macy’s is facing a terminal decline in their franchise. The vast majority of department store retailers are spiraling into a steep decline. In fact, the majority of major businesses and corporations including food chains have all been taking a huge plummet for the last five years. Besides the fact that the market place has changed and the fore-coming of the new age of retail has come, the U.S economy is still not stable after the great recession. This is reflected in the way people spend their money. Macy’s is declining exponentially and they must rebrand themselves for this new generation of the ‘instant’ age. Just as McDonalds was going down the drain the past three to four years, they made smart changes and rebuked their company ideology which led to increasingly better sales. They needed to offer new options and a new setting to draw the younger generation in.
    Macy’s has to rethink how they do business and must begin to make changes that will fit the current market of today. In Jason Del Ray’s article “Amazon didn’t kill Macy’s. Macy’s did.”, Del Ray makes an important point by claiming, “The bottom line, however, is that Macy’s stores, by and large, have looked and felt the same forever. And in digital, Macy’s has long been on the defensive,” (Del Ray). Macy’s has fallen behind and have let themselves become the second option in retail. If they want to come back and be the retail empire that they once were, they need to realize their business ways are obsolete and no longer applicable for this new generation. Macy’s needs to throw away their previous business model and renew their stores and add merchandise that is more reasonable in pricing.
    Macy’s is blaming the marketplace and is not taking responsibility for failing corporation management. As Del Ray states, “Macy’s has said that it has too many stores, in too many underperforming locations. It’s closing 100, and no one should be surprised if that number grows in future years,” (Del Ray). Macy’s assumption that the locations are bad is simply an excuse. As Del Ray also states in his article, “Macy’s market cap was $24 billion at its 2006 peak. Today it’s just $9 billion,” (Del Ray). The fact that just ten years ago Macy’s market cap was at $24 billion shows it is not the location of their stores, but rather the way they are running these stores. Macy’s has not been an enticing store to shop at in recent years and this is because the prices and way they perform business is out of date. They cannot expect to cruise through sales as they used to since people would rather stay home and order what they need for a cheaper price. Del Ray continues by saying, “In short, a visit to Macy’s in 2016 felt a lot like a visit to Macy’s in 2006. That’s great for nostalgia, but very bad for business,” (Del Ray). Though it looks bleak for a comeback to the prior standing Macy’s had in the retail market, Macy’s must find a new place to land in retail. The people who once purchased their merchandise are the same people who are now clearly using e-commerce as their means to purchases. Macy’s needs to find a new market that specializes in a more narrow group of people.

  22. Evan Costello January 20, 2017 at 3:08 pm #

    Macy’s, the world renowned department store, is an American institution dating back to its founding in 1858 with its flagship store in Herald Square of New York City, which is currently the second largest department store in the world. Macy’s has proven itself time and time again that the rigorous flow of the economy has never once disrupted the flow of their business, with other competitors like JCPenny and Sears showing some financial issues. With that being said, times are changing, and an everyday consumer would rather order a product online rather than spend money in the store itself. Even more so, the consumer and retail market has changed. Websites like Amazon, Zappos, and eBay are online shopping websites are to blame for the drastic change in the way consumers shop.

    I myself would agree that the retail market and stores such as Macy’s have taken such a financial hit because of the online competition from websites like Amazon. But according to Jason Del Rey’s article “Amazon Didn’t Kill Macy’s. Macy’s did.” Macy’s had too many stores open for business in too many underperforming locations. This problem does not put Amazon or other online retail giants at fault, but this is entirely at the fault of Macy’s itself. Rather than adjusting their management of their company and consolidating their business operations to be more online rather than opening more stores than necessary, they in turn feel the brunt of the economy while online shopping continues to be on the rise.

    Another catalyzer for the downfall of Macy’s is the organization of the stores themselves. For example, I live in the Worcester County of Massachusetts. In between my hometown of Milford, there are two Macy’s stores in two separate malls one hour away from each other. In the Natick Mall, which is the hub for retail consumerism in Massachusetts aside from the city of Boston, the Macy’s at that mall is always fully staffed, neatly arranged, and is prepared for the heavy traffic of consumers day in and day out. However, in the Solomon Pond Mall, where the other Macy’s is located, the store reflects a post-black Friday experience with clothes disheveled on the floor, limited staff, and limited products. In essence, the store does not reflect what a store that is doing well looks like. One might say that although a store looks disheveled, does not mean that the store itself is doing poorly, but Amazon and its other true competitors in the retail market right now like Nordstrom and Bloomingdales have an issue such as this.

    Plus, most of their merchandise can be found in a number of places. Macy’s does sell certain high end clothing brands in their stores and online such as Polo Ralph Lauren, Tommy Hilfiger, and Nautica as well as supplying clothing brands that are owned by Macy’s like Club Room and American Rag. Having said that, the high end clothing brands Macy’s sells can be found in a number of other stores, in greater quantities and in better organization.

    In my opinion, the unwillingness and lackadaisical management of Macy’s has finally caught up to them, but there is a silver lining. Most retail stores in the industry have such a massive inventory with so much left being unsold, that they have begun opening quasi store concepts that sell the same high end goods at a much cheaper price. These stores will be off-price satellite stores known as Macy’s Backstage, and these stores will compete with stores like Nordstrom Rack, T.J Maxx, Filene’s Basement, and Marshall’s. Each of these companies has shown success over the past few years. Ergo, I believe that if Macy’s backstage takes off positively, that the franchise of Macy’s itself may repair the damage in years to come.

  23. Nick Shervanian January 20, 2017 at 5:01 pm #

    This article is emphasizing the point that technology is starting to take over many aspects of life and it will continue to take over many more. In this case, it is shopping. With online shopping being such an easy and convenient way of shopping for many people, many shops feel the repercussions of online shopping. In this article, it was Macy’s being taken over by Amazon. Since the emergence of these online shopping sites, Macy’s cap has gone from $24 billion to $9 billion in the last 10 years. Macy’s also did this to themselves in some ways. It used to be the “go-to” store with items that you could not find anywhere else. Now stores have gotten so messy and described as, “a visit to a teenager’s bedroom.” Items were all over the place and nobody could give a useful answer to any question. Even in neat stores, they are low on merchandise. It has become a lot easier to just click buttons and sit in the comfort of your own home rather than go into the war-zone that is the actual store. Amazon also the advantage in the prices of their items. Since they are cheaper, then more people will buy from them.
    I was never a big fan of Macy’s. It was not my type of store. I do almost all of my shopping online. This past Christmas, I did my entire gift shopping in my dorm room on my computer and got it shipped to my house in Boston. Macy’s has tried to solve the problem by making e-commerce of their own with China, but that will not be able to compete with Amazon here in the United States. They are also going to try to upmarket and down-market at the same time by creating an off-price outlet store as well as adding upscale merchandise to its top 150 stores. It is not easy being in the middle, especially with Amazon breathing down your neck waiting for your store to fail. Amazon also has a much greater variety of products to select from. Just in clothing sales, which is what Macy’s is known for, Amazon is projected to pass them for the year. Things are not going to get easier with CEO Terry Lundgren stepping down.
    Unless Macy’s can somehow change this downward slump and save the company, competitors will soon eventually win and Macy’s will be out of business. Some experts expect this expected within the next 15 years. With so many more efficient and cleaner options for shopping, whether online or actually in the store, Macy’s will soon be passed over. Online shopping is the new “shopping experience” that everyone loves. Amazon is the new envy of shopping for businesses. They are also a very smart investment to make. They know that doing everything from making the delivery to packaging; they will make a maximum profit. Amazon is on a great track to achieving their goals and becoming one of the most successful self-dependent companies ever.

  24. Erin Carunchio January 20, 2017 at 5:59 pm #

    While reading this article, one word came to mind immediately, Technology. Technology has become something that you cannot ignore in this world. What came with technology was the increase in online shopping. Online shopping has been one of the biggest inventions in the past 10 years. However, online shopping and the improvement of technology is not the only reasons for Macy’s downfall. It is the act of not keeping up today’s trends that can keep customers from walking out of a Macy’s location empty handed. Amazon.com in taking over simply because they are more updated. Their products, advertisements and actual services are all more superior to Macy’s because they are customer friendly. An unorganized and not updated store can seem to appear as if the store is not thinking about their customers, which could be the case for Macy’s.
    Technology is huge. It is the biggest thing in this world today. That is why online shopping is the new trend. Online shopping is new, convenient and most of the time, user friendly. That is why people us it so much and why is growing popularity every year. Amazon.com is one of the biggest companies in this world because of how convenient and user friendly is. Wherever you are, you can order something in the palm on your hand and have it sent straight to your doorstep in just a couple of days. These big department stores are not updated with online shopping. Most of the time the products that you will see on line will be “in store only”. That frustrates them because what if they cannot find it in the store. According to this article, they said the Macy’s in Paramus, New Jersey “felt like a visit to a teenager’s bedroom”, disorganized and messy. Disorganized and messy can read to the customers that Macy’s does not care about them anymore. They do not care how they appear to their customers, which is their own fault. Amazon is more convenient to people who are on the go and do not have time to actually go to a physical store and shop. Another quote in this article about Macy’s that surprised me was “..a visit to Macy’s in 2016 felt a lot like a visit to Macy’s in 2006”. 2006 was ten years ago. When I read that, I thought wow how bad, does Macy’s actually look? When we hear 2006, the words old and outdated come to mind. If the current Macy’s reminds us of 2006, old and outdated is what we are going to think of it. No one wants to go into a store that does not keep up with the latest trends. Another quote said, “There doesn’t appear to be much stuff that you can’t find elsewhere”. Macy’s products are the same products that you can probably find in any other department store and Amazon. If someone can find it online and have it delivered right to their door, they are not going to go out of their way to actually get up and drive to the closest Macy’s and find that same product in their store.
    Overall, I think Macy’s did this all to themselves. They are not up to date with today’s society. They need to update with their technology, to make more things available online and to start thinking how they look to their customers. An unorganized and outdated store does not look good to the public. That explains the major economic drop from 2006 to 2016, which was about 15 billion. Technology took over this world and Macy’s was not able to keep up with it. It looks like Macy’s will not be one of the biggest companies in this world much longer if something does not change.

  25. Nicholas Thomas January 20, 2017 at 6:11 pm #

    As explained in that news article “Amazon didn’t kill Macy’s. Macy’s did.” by Jason Del Rey, Macy’s market cap has plummeted since 2006. At its peak in 2006, the company had a market cap of $29 billion and as of 2016 its peak was $9 billion. In response to this $15 billion dollar drop, the company is starting an e-commerce operation in China, and will be closing 100 stores. Macy’s simply cannot compete with brands like Amazon.com. Even more generally, I would argue that brick-and-mortar stores cannot compete with e-commerce shopping. This all links back to the idea of instant gratification talked about in Declan Wilson’s article, “Please don’t panic if you haven’t found your life’s purpose.” In Wilson’s article he talks about finding purpose in terms of delayed gratification, but in today’s society all people can focus on is instant gratification. The idea of instant gratification applies to the all aspects of many peoples’ lives. Brands like Amazon.com fulfil that need whereas Macy’s cannot. Specifically, Amazon.com fulfill the need for instant gratification through Amazon Prime which allows people to get free shipping, discounts, and overnight delivery. Amazon.com also has a wider selection of clothes compared to Macy’s. With overnight shipping and a wider selection of clothes, people can shop from anywhere rather than going to a brick-and-mortar store. E-commerce has taken convenience to a new level.
    There is the argument that not everyone wants to shop online or at least there are those that love the feeling of being in a store and being able to physically touch the products. Assuming there are these people, technology has made price checking immensely easier as compared to ten years ago. So even if some people do not shop online, many will price check online. Macy’s prices are not the best, ten years the company may have been able to get away with being a bit pricy, but being pricy does not work today. Now, one can still argue that he or she likes to be in a store. From my experiences, Macy’s can be extremely messy due to clothes being everywhere. Being messy is not good for business.
    The title of the article is “Amazon did not kill Macy’s. Macy’s did.” I agree Macy’s failed to follow the e-commerce trend, but would argue that e-commerce and convenience killed Macy’s. Another example of a brick-and-mortar store falling to e-commerce is Blockbuster and Netflix. Netflix allows people to directly stream movies as compared to going to a store to pick up and later return the movie. Even grocery stores such as Shoprite recognize that if they are not the most convenient option, they will lose business. Shoprite now has an online delivery option so people do not even have to go to the store to get food. Businesses need to adapt to the growing demand for convenience and immediate gratification. I would predict that without bringing in a young perspective into the CEO position Macy’s will only continue to lose money and eventually tank.

    Wilson, Declan. “Please don’t panic if you haven’t found your life’s purpose.” SHRPA. 9 January 2016, https://blog.myshrpa.com/please-dont-panic-if-you-haven-t-found-your-life-s-purpose-fefdbceb45f2#.6khi5tfng. Accessed 20 Jan. 2016.

  26. Peter DeSantis January 20, 2017 at 6:59 pm #

    “Amazon Didn’t Kill Macy’s. Macy’s Did.” by Jason Del Rey provides an interesting insight into the recently failing iconic department store, Macy’s. Over the past two months Macy’s has announced thousands of job cuts in the near future and the closing of at least 100 under performing stores, resulting in the price of Macy’s stock to drop 16 percent.
    The most obvious issue that Macy’s is facing is competition from the ever-growing rise in e-commerce specifically from sites such as Amazon.com, which is essentially a department store of enormous size with more choices than Macy’s could possibly dream of offering within a store that customers can shop at from the comfort of their homes. Macy’s also has trouble competing with discount price department stores like Marshalls, T.J. Maxx, and Burlington Coat Factory.
    I believe that Macy’s has incredible potential to recover from this currently miniscule stumbling block that they have encountered over the past holiday season, so long as they act quickly. First above of all, Macy’s needs to understand that the times have changed and so has consumer behavior. People love shopping online and it does not appear that this trend is going to change any time soon. Therefore, the closing of 100 brick and mortar stores is actually a good sign for Macy’s because it does not show so much that the stores are failing as much as it shows that the company is being progressive.
    Macy’s recognizes the shift towards online shopping, so once those stores are closed, they can pour more resources into e-commerce and new product research and development. Macy’s should focus on improving their online website to make their products more appealing and offer promotions that are only available on the Macy’s website. Amazon is a giant that appears to be unbeatable, so rather than seeing it as an enemy, Macy’s should work with Amazon. Macy’s can utilize their niche of having brands which are “only at Macy’s” such as Alfani, Club Room, I.N.C, bar III, and Hotel Collection by concentrating on expanding and advertising these brands. Then they can go to Amazon and try to strike up a deal with them to put up more Macy’s products on their website and maybe even get them on their daily deals section every now and then. Numerous online shoppers go immediately to Amazon before any other site, so this would increase the chances of more consumers seeing Macy’s products and subsequently buying from Macy’s through Amazon.
    With the brick and mortar stores that still remain, Macy’s has to worry about off-price stores and their high-end product consumers. Somehow Macy’s needs to satisfy both sides of the spectrum of customers from those that prefer great deals on their clothing purchases to those that will pay top dollar for the best brands. However the first thing that Macy’s needs to worry about regarding its stores is their quality. Del Rey mentions in the article how when he visited a local Macy’s, “items were strewn everywhere and no useful answers were to be had.” That is simply unacceptable for a retail store. Macy’s should invest in revamping their stores and improving customer service. Customers who see that their local Macy’s has been renovated will be intrigued to go investigate its new appearance. Nowadays, with all of the online shopping, the real difficulty is getting customers into the physical store. Once they have this part accomplished, they can attack shoppers with incredible customer service. If Macy’s can pull of truly exceptional customer service and new, hospitable atmosphere shoppers will continue to return because they like the way they are treated, even if shopping online is easier. It does not matter if they like big bargains or big name brands, any customer will return to a Macy’s where they feel welcomed and know they will receive assistance with their shopping needs.
    I have a lot of faith in Macy’s to come back with a bang later in 2017 through 2018. As long as Macy’s can recognize and adapt to the new consumer trends they will continue to thrive as a major leader in department stores. I think it will be easy for Macy’s to recuperate since they already have so much prestige from the memorable commercials to the Thanksgiving Day Parade. Everyone knows Macy’s and their reputation, so all they need to do is announce a few good ideas and follow through and their stock price will be back well above where it was at the beginning of December 2016 before May of 2017.

  27. Isaiah Allen January 20, 2017 at 7:10 pm #

    The recent increase in internet shopping, has resulted in a huge downslide for retail clothing stores across the country. In his article, Jason Del Rey focuses on Macy’s specifically and their incompetent excuses for their failure. Macy’s alluded to the fact that “changing customer behavior” was leading to their low results. However they failed to acknowledge that their poor customer service throughout this past holiday season, also contributed to their lack of success. Macy’s poured salt in an already big wound by not making sure their stores were kept in an orderly fashion throughout the holidays. In a crucial time of the year, Macy’s fell short of its past success. The store managers should have done a better job of making sure they were putting their best effort forwards in terms of cleanliness. The holidays are a time where most stores expect to have more customers than normal, so they should have been more prepared. Macy’s dropped the ball at a time where they simply could not afford to. Now their poor performance, in addition with the rising success of ecommerce companies, could spell trouble for the once popular clothing powerhouse.
    Amazon has dominated the ecommerce market as of late because of their wide variety of products as well as their quick delivery. Just about everything that Macy’s sells, you can find on Amazon. In this technology dominated era, Amazon’s ease of access trumps that of Macy’s. I remember in grade school, going to the mall with your friends was a common hobby amongst teenagers. Now whenever I go to the mall it always seems to be less and less crowded, excluding the holidays. This is primarily Macy’s downfall because people have to set aside time to go to their stores. However our phones are always in our hand and therefore so is Amazon. The inescapable presence of technology has made it more favorable to shop online given our busy schedules. Consumers prefer online shopping because they can avoid the hassle of waiting in lines, and digging through piles to find what they want. The common mindset is that whatever Macy’s has on their shelves, you can most likely find it somewhere else for cheaper online, and it may be exactly what you are looking for. Amazon’s wide variety of products has made it tough for Macy’s to keep up. In addition, Amazon has already introduced its own brand of clothing products which only could bring more bad news for Macy’s. Now in addition to the abundance of products Amazon already has, they have more ammunition to steal Macy’s customers from them. Macy’s used to be a dominate force in the clothing industry but as technology took a larger role in marketing, Macy’s refused to change its business scheme. Other retail stores have continuously made improvements to their mobile sites like Best Buy, Target, and Wal Mart. However Macy’s has struggled with their online services and thus, their numbers are where they are. In the future, Macy’s must improve their online marketing skills as well as their customer service if they want to remain in business. Especially since in the future technology will only become more prevalent, and Amazon is looking to put them out of business, which seems inevitable at this point.
    The future of the clothing market seems to be headed towards the internet. More people are shopping online than ever before, and we should only expect this to continue. Smartphones allow us to do our shopping whenever we please, and also for a cheaper price due to the wide variety of websites. With the introduction of Amazon Prime, customers now have the option to receive next day shipping which could also help strengthen Amazon’s position over Macy’s. The fact that Amazon is projected to sell more clothes this year than Macy’s, shows that they have a lot of catching up to do, and it already may be too late. Macy’s has to work on the variety of their products, and must continue to put everything they have into improving their mobile sites. Their multimillion dollar ecommerce operation in China is a good way to start. They must also improve the quality of their products that way they can strengthen their brand. They should not just have clothes that you can find at any store, but that are unique. Macy’s can bounce back from this recent slide with some fine tuning, but holding off the mighty Amazon will be tough.

  28. Owen Balseiro January 20, 2017 at 7:14 pm #

    Amazon has given a lot of different companies a lot of different troubles. From Amazon putting the hurt on bookstores like Barnes and Nobles to it taking a large market share from many retail companies, Amazon seems to look set to take away a large portion of Macy’s customers too. But the troubles that Macy’s now faces is not entirely Amazon’s doing. Macy’s did what so many other successful companies have done and paid for dearly. They got complacent, they thought that they were so far ahead that they no longer needed to improve. And while that can work for awhile, but capitalism ensures that someone will always come around and see an opening to take away someone else’s share. What Macy’s did was mess up two important things, they failed to innovate and failed to recognize the importance of e-commerce.
    Jason Del Ray said it best when he said “In short, a visit to Macy’s in 2016 felt a lot like a visit to Macy’s in 2006. That’s great for nostalgia, but very bad for business.”. What Jason is saying is that Macy’s has failed to make their stores feel like they have adapted to the changing tastes of the market and stuck with their guns. A Macy’s store feels old, run down and it can be hard to even find the products you want as it stores Jason describes it as “For starters, a trip into Macy’s this holiday season felt like a visit to a teenager’s bedroom: In its Paramus, N.J., store, items were strewn everywhere and no useful answers were to be had.” It shows that not only are some of Macy’s stores are a mess but that the staff working them either do not care or do not know enough about the store to help customers looking for specific products. And even if they do Macy’s has little in the exclusive category as they have few products that cannot be found at others store or online. And even if it is once store, when customers talk about bad experiences, they look at the brand and not at the specific store. This is capitalized on my websites like Amazon that have clean and easy to use websites where customers can easily find the products that they are looking for and which leads into the next thing Macy’s missed.

    Macy’s did not think that people would flock to e-commerce like they did. But now that it is obvious that e-commerce is here to stay, Macy’s is playing catch up. They are now pouring hundreds of millions of dollars into their e-commerce business. But even that is not enough to unseat websites like Amazon that have so many products from other stores and even exclusives that cannot be found anywhere else. And even if Macy’s creates a website for their ecommerce business that rivals Amazon, people are not predisposed to leaving what works for them. Macy’s is on the defensive for their digital retail and it is going to be hard to unseat titans of the online shopping like Amazon. If the once unshakable Macy’s wants to get its customers back it may have to go through a large overhaul and rebranding to win back its customers to not only its website but its brick and mortar stores as well.

    The problems that Macy’s face are numerous and challenging. Not only Macy’s but many other once strong retailers like Target are also feeling the loss caused by websites like Amazon and stores like Walmart. But it was not just outside factors that caused Macy’s to be in this position, it was a lack of innovation and a lack of foresight that lead to Macy’s losing so much of its customer base. Now that Macy’s has changed CEOs and it’s beginning to try and change we may see the retailer turn things around. But personally i think it is only a matter of time until Macy’s is a case study and not a store.

  29. Jevon Mitchell January 20, 2017 at 7:44 pm #

    When you think about department stores, Macy’s is usually one of the first to come to mind. At nearly every mall in the United States and even locations across the world. Then why has Macy’s value plummeted from $24 million to merely $9 million over the past eleven years from its peak in 2006? This is largely due to the change in consumer preferences. It is the 21st century and the world is constantly shrinking before our eyes. Not literally shrinking but putting things that would once upon a time be far out of your reach right into your hand or lap with your cellphone or computer. E-commerce has added to this shrinking world effect a great deal. With the internet you could order anything that you wanted online even from the other side of the world, and instead of having to travel to get it you could conveniently have it delivered to your doorstep which is amazing. Many companies have taken advantage of this technology and there are plenty of businesses starting up every day that will offer this same service, making competition for physical department stores like Macy’s to become redundant and even start to put them out of business in many areas.
    A major company that practices this e-commerce is Amazon. In 1997 went public at only $18 per share and today, in 2017 that number jumped to over $800 per share. This is largely because the service that they offer is what consumers are looking for in this day and age, and will continue to use. Amazon sells nearly anything that you may ever need or want and you can order it to your house without even getting out of bed, making them wildly popular over the past 20 years, but this is not what is driving Macy’s out of business as we speak. Macy’s is what is killing Macy’s right now. Despite having an enormous amount of physical locations they also have an online store, but that alone was not enough to save them from their struggles.
    Disinterest in Macy’s begins in-store. As noted in the article, when people visited the store over the holiday season it looked a mess, which is unappealing to customers. Many people would rather pay for the experience when shopping in person, which is why other department stores such as Neiman Marcus which are always very clean and have staff attend to your needs and have the ability to tailor your experience have survived in this e-commerce centered shopping age. Macy’s is also not known for updating their catalog of items sold as they have carried the same brands for years, making them rather boring in the eyes of the consumer.
    Their online store is also nothing to brag about. Although it does allow for consumers to order the items that they want directly to their homes it runs into many obstacles. It is not as simple as other online stores such as Amazon, the selection of items is also limited as well. Macy’s will have to do some serious renovation to both their online store and brick and mortar locations to revive the department store and keep up with rising competition.

  30. Bobby Bradley January 20, 2017 at 8:02 pm #

    For a long time, Macy’s has been a huge retail store that has had a lot of success and in order for them to continue that success they are going to need to make changes. Macy’s has been open for years and it hasn’t changed one bit. Their stores are exactly the same as they have been years ago. Lately they have been struggling to compete with their competitors. The stores like TJ Maxx, Nordstrom Rack, and Marshalls are killing Macy’s because of their quality clothes for a cheaper price than Macy’s. When stores like that open you need to adjust and do something to compete with those stores. They are trying to do that by creating their backstage section that offers cheaper clothes. When Macy’s says they are going to add a more upscale merchandise as well kind of puts them in the middle of upscale and down market. They can’t be stuck in the middle like that, it will never work. They have to decide to be one or the other.
    A big problem with being in the middle of upscale and down market is that Amazon is looking to pass Macy’s in clothing sales this year by adding a huge selection of clothes to their website. Macy’s is blaming websites like Amazon for changing customer behavior for the recent struggles. Well of course consumers are going to go elsewhere to get the same product as Macy’s but for cheaper and online so they don’t have to go into Macy’s. Pouring millions of dollars into an online store is a great idea for Macy’s to get back on track and into the game with the other stores and websites like Amazon. Although it may be too late if they aren’t going to change other things within the company.
    Amazon is on the rise and are taking over the entire retail world with their very appealing websites. People go to Amazon for anything and everything and its killing these stores in a big way. I don’t even like to go into stores like Macy’s anymore. Why waste my time by going to the mall to look for something where they won’t have it or don’t have my size or it is ridiculously overpriced when I can go onto my phone and order it on Amazon. Amazon has everything possible for great prices and can be shipped to you within days. Now they are going to add a huge clothing section to their website which is going to be the beginning of the end for stores like Macy’s.
    My Mom is a great example of Macy’s problem from within. She used to go there all the time to buy an outfit for her job. Now every time she goes to look for an outfit she says they have the same old stuff and have nothing new or she likes one thing but it’s way too expensive. Sometimes we get dragged to Macy’s with her and their setup is exactly the same for as long as I can remember, nothing has changed. They need to make changes fast or they are going to be done for good.

  31. Caroline Massa January 20, 2017 at 8:13 pm #

    There is no doubt that internet e-commerce shopping sites, particularly Amazon, have contributed to the financial struggles of once popular “brick and mortar” stores. Founded in 1994, Amazon has forever changed the way consumers shop causing stores such as Macy’s to frantically find a way to survive. It appears that Macy’s is determined to put up a good fight by implementing new store concepts such as adding upscale merchandise in some stores and searching for new and creative ways to stay viable. In addition, they have hired Jeffrey Gennette to the position of CEO to replace Terry Lundgren. Doubts have been expressed whether it was prudent to hire from within the company, however Gennette knows Macy’s and brings this knowledge as well as understanding the challenges the once retail giant faces in their fight to survive.

    While it may be true that Macy’s image and inability to stay current has contributed to declining sales, I believe that their biggest problem is my generation We have grown up in a world of technology that allows us to shop whenever and wherever we want. As long as our cell phone or computer is charged, and we can get our hands on a credit card we are good to go. This is a huge challenge to any retail store as it is such an easy and convenient way for people to shop. This is not the first time that we have seen stores forced to close because of a major transformation in the retail industry, remember the mom and pop stores? They could not complete against the larger chain and department stores that ultimately forced them out of business. The benefits of Amazon are hard to resist with their competitive prices, fast delivery, endless availability, and discrete nature of purchasing items. Macy’s response to “pour hundreds of millions of dollars into its e-commerce operation” shows forward thinking because this is the new reality for shopping. While Macy’s may not have been as proactive as they could have been, the bottom line is that the internet shopping is very appealing to both men and women and Macy’s can at least profit with these sales.

    Although I will admit that I am often too lazy to go to the mall, I do not want to see their demise. As retail stores like Macy’s succumb to financial ruin, eventually malls may also become a thing of the past. I want the choice to be able to go to a store, see the merchandise and go home with a purchase that day. Capitalizing on this one advantage over the internet is an important marketing opportunity for Macy’s and other retail stores who are facing similar sales problems. I hope that the changes that Macy’s is implementing will be enough to keep them in business, because without competition Amazon and other e-commerce sites will capture the retail business completely. Their fight brings to mind images of David and Goliath, where Macy’s is facing the giant with very little chance of winning. One can only hope that Macy’s can slew their giant and regain their financial footing in the world of retail, because their loss will ultimately be our loss.

  32. Ameen King January 20, 2017 at 8:51 pm #

    I do believe that Macy’s has a big hand in its own decline;
    however, I do not think that they are tackling this issue properly. They are
    expanding rather than rebranding or selling. When an act gets old, it is better
    to just end it gracefully and find something new or go out with a bang that no
    one will ever forget. One example is the social media video sharing app called
    Vine. Vine has been a global sensation since the time it started back in 2012
    until its noticeable decline in 2016. The reason for its downward spiral was
    competition and lack of a progressive next step, which is very similar to the
    Macy’s ordeal. However, instead of trying to cultivate a steadily wilting rose,
    like what Macy’s has attempted to do with its brand, Vine noticed that it
    couldn’t compete with the new and easier to use updates of Instagram and bowed
    away before it lost any more profits. It is very risky and expensive trying to
    rebrand but a lot easier to just sell and supply to another competitive
    company. Vine was bought out by Twitter and is now a third party video editing
    app for the latter. No profits were lost and they could still live on in their
    glory as for how they started. This was also happening with the mass media
    presence known as Facebook who in their loss of former glory, just funded and
    merged with another platform thus keeping them alive. Despite Macy’s being a
    billion dollar company, the issue is the same and the solution could be
    drastically better. One possible solution could have been to consolidate with
    Amazon rather than take a beating from them, or even discuss a possible merge
    in products or goods. Macy’s has a plethora of luxury brands from a variety of
    product types, which could be a benefit to Amazon’s catalog. In addition, when
    a consumer purchases a Macy’s imported item, Macy’s can get a percent of the
    profits so they can stay alive much longer in the competitive world of
    commercial consumerism. Another possible solution to revive and restore the
    company to its former glory could just be to minimize the number of stores and
    maximize the products within the remainder. Doing this will give them a chance
    to pressure customers to buy more because the Macys that they are used to is no
    longer within their vicinity. Sales, Promotions, Events or even announcements
    of new product lines are ways they can pressure customers. With fewer stores,
    more products, and more buzz among its customers, they will have the open opportunity
    to expand back to their familiar areas. The expansion should be very gradual
    and non-promoted however. Only then would I see Macy’s returning from its low
    point and getting back into the competitive market. Continuing, there could
    also be an expansion or consolidation on a global scale rather than nationally.
    With the global buzz and recognition, they would start anew with other
    countries allowing those peak sale opportunities to arise again.

  33. Derek Luckman January 20, 2017 at 8:55 pm #

    The Macys brand has been around since 1858 growing into one of the largest retailers of our time. Each year Macys keeps up with the expanding retail industry. From generation to generation, Macys has managed to compete with its top competitors like Nordstrom and J.C Penny, Neiman Marcus and Amazon to name a few. With technology continuing to advance, it was only inevitable that online shopping would soon become the number one choice of most customers. Online shopping not only brings convenience of time management but great for people who do not want a human interaction with customer service. With a simple Google search off of their device a person can find the item they want and order it. After ordering a package, one can get excited for its arrival within three-to five business days like a present when dropped at your front door. Then the experience is over and repeated.
    While working at Macy’s in the past in high school, I had firsthand experience with customers and the business. Macy’s taught me great customer service and followed the motto of the customer is always right and to smile with every transaction. As mentioned in the article “a visit to Macy’s in 2016 felt a lot like a visit to Macy’s in 2006”. This quote in my opinion holds true and is indeed bad for business. If the feeling of Macy’s has not got any better than the experience of shopping in 2006 then Macy’s needs not only a makeover in the e-commerce industry but a makeover for the whole business.
    As mentioned in the article Amazon is blazing past its competition and with ease thanks to technology. Amazon started in 1994 with the hopes of electronic commerce becoming as big as Macys one day. Now becoming a giant in its own right, Amazon is now a trail blazer and paving the way for retailers to not only emulate its business but find ways to surpass it. Amazon is now the world’s largest internet based retailer by total sales and market capitalization.
    I feel that this is not only a classic case of old school verse new school this is a case of what the consumers want verse what Macys already knows in marketing. I agree with what the author of the article is saying that Macys killed Macys and is trying to regroup and return from its downfall. The marketing section of Macys I feel needs to re strategize and follow suit on what the customers are saying in feed backs and improve from there. Macys is a house hold name and I for one would be very upset if Macys ever went out of business. The Macys brand has not only been around for so long but Macys has managed to be mentioned in movies .It has a parade for almost every holiday and is a staple in an average east coast department store shoppers routine. In conclusion as mentioned in the article Macys now is trying to see if new leadership with a new CEO will revive Macys from this drought. Hopefully Macys can manage to get back in the game and keep up with the ever changing demands of customers and the online industry.

  34. Christian Cox January 20, 2017 at 8:57 pm #

    Amazon Didn’t Kill Macy’s. Macy’s did
    Amazon has made incredible advancements and has achieved an incredible amount of growth. Many believe Amazon to be the sole reason for the incredible drop in Macy’s market capacity. Jason Del Rey sets the record straight and reveals the critical faults of Macy’s in his article, “Amazon didn’t kill Macy’s. Macy’s did.” Del Rey reveals the fact that any corporation regardless of age or legacy is susceptible to substantial losses. The complacency of all Macy’s employees and executives showed their inability to adjust their business model to the changing business environment. Customer service is Amazon’s number one priority and customers appreciated and adjusted to expecting from all companies. Macy’s poor customer service showed an inability to satisfy customers. Del Rey referenced one store’s availability of items and ease of shopping in Paramus, New Jersey and says, “a trip into Macy’s this holiday season felt like a visit to a teenager’s bedroom… items were everywhere and no useful answers were to be had.” Del Rey is emphasizing the how mismanaged Macy’s was on the brick and mortar store front. Perhaps the main focus was pouring millions into its e-commerce site an unsuccessful plot to rival Amazon’s. What Macy’s did not realize was that a knock-off of Amazon would not improve the number of customers in the Macy’s stores. Macy’s executives were not able to incentivize consumers to shop in their stores which led to an inevitable loss in revenue. Del Rey argues that it if Macy’s should have been offering exclusivity to shoppers, would increase revenue and is one way Macy’s could adapt their business plan. Del Rey concluded by wishing luck Macy’s CEO, Terry Lundgren because he claimed that Macy’s would soon be preparing for the leadership of Jefferey Gennette. These are not the only changes Macy’s is making they are likely to close one hundred of their least profitable stores, which will obviously lead to a large loss of jobs. This is unfortunate for those employees but boosts the confidence in shareholders.

    Macy’s market cap in 2006 was twenty-four billion dollars and now is a mere nine billion dollars. Macy’s spiraling market cap is a reminder to all corporations 0f the oldest rule in competition, which is the failure to adapt leads to their inevitable defeat. As of now, they are reshaping their to compete with the new faster efficient business atmosphere. The fear of technology has arisen, but technology has transcended to a point where any business could predict. All companies should heed the failures of Macy’s as a lesson to constantly develop and strengthen a company’s mission statement to compete to its maximum potential. It is the role of the firms to supply the demands of the consumer, this is how microeconomics sums up why companies are constantly competing to supply the demand most effectively while remaining profitable. The reason the business environment is changing is because new companies, are adapting and are constantly changing the way we think about business. Companies that do not respect the capabilities of new technology are doomed to fail in a new environment. The principles of capitalism can never be overlooked due to greed for profit. The bloated corporate business model that succeeded in the past need to be far more creative to compete with the use of new innovative concepts that have been introduced recently. Amazon’s CEO, Jeff Bezos, uses an elegant way to increase growth and it is to invest the would-be profits into Amazon. Amazon’s stock price is sky-rocketing and everybody wants Amazon. What companies like Amazon, Google, and countless other technology companies are doing is redefining how we live, which is revolutionary and truly remarkable. What this means for their competitors is that they have to not only change but plan for the future of the market. Bezos has created a business model where it will grow to its inevitable carrying capacity then reap the rewards of the investments made in the company once it is completely developed, despite its seemingly infinite potential. It is as if older companies view the game of economics like a game of Risk; Bezos has continued to grow its company, or army, to explore and take over new markets. The old bloated businesses with overstretched armies are not able to compete with the efficiency and are paling in comparison to the Amazons and Googles of the game. They are essentially rolling over and blaming their losses on their poor luck in their poor investments as if it was just a loss based on chance. Del Rey’s article shows how Macy’s lack of innovation and its massive investments in its e-commerce to match its competitors overstretched the company because it reduced its effectiveness at its initial mission statement. This is not to say that mission statements cannot be completely redirected, however, it will not succeed if it is counterintuitive to fulfilling the satisfaction of the consumer.

  35. Sirina Natarajan January 20, 2017 at 8:58 pm #

    My mother loves to shop. Whether it is online, in a store or even in a flea market, she can not get enough of it. My mother also loves Macy’s. I, however, am more partial to stores that provide easy options to shop online. The main reason why Macy’s is declining so much is not just because people nowadays do not go into department stores as often, but also because the content that they have is considerably dated. People want the next best thing and they want it immediately and as cheap as they can get it. Macy’s gets all of their clothes from designers that partner with them and they get them seasons after they are in style. Online stores life Rent the Runway and Amazon guarantee that their customers are getting the season’s latest styles and at an affordable price.
    Macy’s has yet to consider the new wave of “hipsters” that have overtaken this new generation of adults. They are not as interested in the newest blender or a huge grill especially since that is one extra big piece of furniture they cannot take with them on travels. The gigantic department store also fails to consider that shopping on forums like Amazon is much easier to do when at home and between breaks at work. Amazon offers customers special rewards when they sign up to be Prime members such as free 2-day shipping. Macy’s has no such rewards, and the only reward program they offer is through a credit card. People these days do not want more debt piling up on them, so linking up a rewards program with a credit card proves how dated Macy’s really is.
    The new business plan Macy’s should be aiming for is, in my opinion, a simple three step plan to get them back on their feet. First, Macy’s needs to revamp their website and make it easier to navigate. I know it is a marketing strategy to put the “killer deals” on the home page and have them flash endlessly at the user, but it gets quite annoying after a while of surfing through their site. They could put their deals at the middle of the page or towards the bottom, but the categories of merchandise should be the main focal point of the home page. Next, the department store should definitely not bring really upscale clothing to their store as it will confuse consumers about their image. They need to decide who their consumer is and gear towards trying to get them to buy things, whether it be the wealthy middle and upper classes or the growing millennial generation. By shutting down the hundreds of stores, the company is sending the message that they are not very confident in their ability to make a comeback which scares this generation. The company needs to make itself more approachable to the younger generation by maybe signing on younger designers who are making their break into the fashion industry. Macy’s definitely needs to take a few risks if it wants to break back into the shopping industry.

    • Sonya Abrahimzadeh January 21, 2017 at 11:44 am #

      Macy’s has basically become a house hold name in the United States and I am sure it is a known name to many internationally as well. Reading other people’s post, it is quite surprising to me that other people are not surprised by the decline of Macy’s. For one, every time I am in there against my will- it is always packed, no matter the department. Macy’s has always been a go to store for my parents. For me, not so much. Macy’s always has sales and coupons available for customers and card holders. Card holders, especially, get extra discount. I don’t think price point is the problem because a lot of times- consumers do not even pay the original amount on the price tag. Usually, they end up paying less and saving a few dollars! In more recent years, majority of people prefer to shop online rather than physically being present at the store. It is more convenient. Now a days, consumers want everything done with speed. Everything is done so quickly. I am sure you have noticed that there are many apps for restaurants, for example, to order ahead and picking up the order once your food is ready. You can place a reservation online for a table before you even get to the restaurant. Shopping online has been a big thing lately. People shop during their breaks at work. Macy’s has a website for consumers to shop on therefore I can not see how people are saying that other online shopping websites is a problem for Macy’s. The title of this article, “Amazon didn’t kill Macy’s. Macy’s did”, proves just that. Amazon and other e-commerce is not at fault for the decline of Macy’s. They are their own enemy.
      Maybe they should consider revamping their website. Make it easier for consumers to find what they are looking for. Make it easier for them to navigate the site. Macy’s definitely needs to rebrand. They also need to expand their demographics and target market. They need to attract millennials. For the millennial generation, Macy’s competes with stores such as Forever 21, H&M, Zara, Pacsun, among many others not including independent shopping websites.

      Amazon is an extraordinary website. I am actually an Amazon Prime member and I can’t get enough of it. It’s great! I am unsure if it is common to shop for clothes on Amazon. I usually use Amazon for text books, skin care products, technology accessories, etc.

      2017 is a new time for us and Macy’s has to keep up with the change.

  36. Austin O'Reilly January 22, 2017 at 10:22 pm #

    When thinking about big department stores, I always think of Macy’s. I think about the Macy’s parade and how much recognition the store gets. Many know this store from all around the United States and even globally. While reading the plethora of posts before me, I have mixed feelings between the points made by others. I am surprised with the rapid decline of Macy’s rather than the decline. For example, I can see and rationally understand how competitors like Amazon will cause Macy’s to lose some money and therefore cause the stock to drop. However, I would never expect the stock of a store as big as Macy’s to drop 16%. Recently, over Christmas break I went to the Mall by my home, to go shopping for gifts. While I was there, I saw a multitude of people in Macy’s buying everything they could get their hands on. When I personally went into the store, there were plenty of sales and coupons available to help make the price tags more affordable.
    From reading this article I was made aware of many problems with Macy’s that I was not as informed about before reading the article. The article states that Macy’s is starting an online shop in china, which will cost them hundreds of millions of dollars. Although it makes sense for them to try and compete in the online e-commerce market, I don’t think Marcy’s will ever beat or come close to being Amazon for clothes. I think it was a huge mistake to delegate all of that capital into e-commerce when Amazon already dominates that market. If I were Marcy’s I would have invested the hundreds of millions of dollars into making the products they do sell more affordable and more organized for customers to access and buy. The article states that the store in Paramus was a disorganized mess that could have been mistaken for a teenager’s bedroom. This reflection and performance by Macy’s is what is causing the drastic decline of their stock.
    When I saw that Macy’s market cap was 24 billion dollars in 2006 and is currently 9 billion dollars, my jaw dropped. You would think that the successful and booming Macy’s executives would have taken those profits and expand their market or have a more focused target market. Instead they relied that everything would continue to boom, and it just did not. Now the stores have no real target market, where some stores are trying to go upmarket and down market at the same time. On the contrary, Marcy’s is also trying to have its top 150 stores have more upscale merchandise. This leaves consumers even more confused on who, and what products will be in the stores. I am also sure there will be confusion on their website concerning what store has what products.
    Amazon is an amazing website that is currently dominating the online shopping market. Amazon is the best, or dominating the market because of its outstanding customer service and its convenience. Everyone wants to get his or her merchandise in the fastest and most convenient way, and Amazon is both convenient and fast. With Amazon Prime being free to college students for 6 months, I am a member and get free 2 day shipping and access to discounts that non-prime members, do not get.
    If Macy’s wants to stick around, they need to adapt and make changes quickly.

  37. Jiaqi Ma January 24, 2017 at 12:39 am #

    Since technology has become more important in our lives, it has also affected other things like the traditional retail industry. I believe this is a competition between store sales and web sale. Macys, as one of the biggest store retailer, was affected by online shopping. However, we cannot say that e-commerce killed Macys. Although it did have an influence, it was not the sole reason Macys has been having poor sales. This could have been avoided. When the e-commerce rose, the leaders of Macys should have realized that it was time to make a change instead of staying stagnant with the existing state of affairs in 2006. The leader was not open for change. The customers were not only satisfied with the stuff they bought, but they also associated Macys as a good retail store. Maybe the executives were satisfied with their process and did not think to change much of the designs. In any business, it is important to rejoice in the success, but also be prepared for some repercussions or potential problems. For most business, it is important to continue changing because the trends and people’s tastes are constantly changing. This is especially true in clothing retail. In many ways, it appears as if Macys took actions too late. I think they should have also taken in account all the new forms of online shopping, especially with a major competitor like amazon. However, I think the decision to add e-commerce operations in China is a good idea. Because there are many American brands in Macys, many Chinese residents consider those brands a luxury. It is a good financial step for Macy, because it may gain more profits, which can then help pay for more strategic analysis for new sale pitches and retail practices.
    The author said: “a trip into Macy’s this season felt like a visit to a teenager’s bedroom”. And I completely understand. It can be very difficult to find goods that you want quickly. Unlike Macys, you could find goods fairly easily and very quickly on Amazon. When I first visited a Macys store in the Unites States, even the entrance was difficult to find. In addition, I had a bad experience on black Friday; only the goods with an old fashion style had a discount. I did not find any discounts on the new items. If you could spend the same price for new style online, why would you want to shop at Macys? I think this is a common opinion among all kinds of people. All the styles of today are very different, and clothing is one of the few things that need to be update, even if the store is known for specific styles. I know a few people who still love to shop at Macys, and they are either much older than me, or they are not into online shopping. This can be a problem, because eventually, almost every age group will be familiar with technology and there won’t be many people that rely on the physical retail store.

  38. Benjamin Jaros January 25, 2017 at 2:07 am #

    While, I would agree that Macy’s might have reached its height as a brick and mortar store in 2006, I do not think that Macy’s has been “killed.” I think that brick and mortar stores still have a place in the new digital market due to the many ways that people like to purchase clothes. I think Macy’s will need to consolidate into fewer stores and it is imperative that the new CEO aggressively expand, improve, and build-up its online store presence. Further, Gennette will also need to make the in-store shopping experience efficient and seamless so that when people go into his stores they almost always leave having had a good experience.
    Moreover, I am certain that brick and mortar clothing stores will not go fully out of business. I understand the risk of investing in one’s core, over what is new. For a great example of a company that could not respond to change, one only need to look at Blockbuster. However, buying clothes online is different from digital movies online.
    In order to be successful in the digital market, brick and mortar stores will need to change what they carry in their stores to more adequately reflect what people prefer to buy in the store vs. what they don’t mind buying online.
    For example, I do not see myself buying a dress shirt, a suit, or other formal wear online because if I am spending a lot of money on the clothing I want to make sure I like the fit and the look. However, I am far more likely, and I often do, buy sweatshirts, athletic clothes, and shoes online because I am willing to risk the possible error of the clothing being a little too loose or too tight. I think this ideology is likely similar with most people, including millennials. Even if one knows all of the measurements and dress sizes to the tee online, there is still the part of in person clothing shopping that makes people want to try on the clothes to see how they look on them. When one orders online, you cannot see exactly what the product will look like on you.
    In addition, it is a hassle for a customer to have to return a product online. Though some consumers may be more willing to put up with the hassle of returns if they buy the wrong size, many are not. In general, I do not consider the benefit I get from not going to the store worth the risk of possibly buying a suit that does not fit correctly. Therefore, I will not buy my suit online, because there is the possibility that I will have to deal with the hassle of returning it.

    Finally, brick and mortar stores will need to do extensive research into the demographics that each of their stores is placed. From the demographics, they could largely determine their stock and in the process they would be able to more ably compete with the immense size of the online market. This is a necessity for Macy’s or they will be closing far more stores than they need to. Many of these changes are needed, but with old leadership at the helm, only time will tell if Macy’s will be able to succeed or fail?

  39. Anthony Laverde April 25, 2017 at 2:31 pm #

    For many years during Amazon’s birth, they operated at a net loss year after year. Despite this, they continued expanding, keeping prices low and losing money every year. Evan now, being as big and bringing in as much revenue as they do, they are barely above their break even point. Their decision to do this was simple, their primary concern was to obtain market share so they may eventually dominate their industry space. Fast forward many years and we can see that their plan worked, because they now compete with brick and mortar retailers across various different industries due to their ridiculous amount of skews and little risk on their inventory, these are problems that many department stores are facing, such as Macy’s. The article, very accurately, alluded to the fact that going into a Macy’s in 2006 looked and felt the exact same as going now in 2016. I recently went to Macy’s for the first time in a couple years, and that exact idea came to mind. I guess I did feel nostalgic, but not to the full sense of the word. It was not pleasant memories; in fact, I used to hate coming into Mac’s because of crowded and unorganized the inventory was. This was still the case eleven years later. To make things worse, the store lacked a sufficient amount of employees. There are dozens of departments inside the store, and their workers do not seem to be allocated effectively. A majority of the workers were in the beauty section, and customers could often speak to multiple employees at once. However, there is a lack of workers in the clothing sections, as well as a lack of fitting room support and inventory checkers. The friend I was with waited almost twenty minutes to receive a shoe in her size! The entire process was long and boring, and she ended up not fitting in the size that was brought to her. We elected to leave and she proceeded to search for the shoes online. She bought them minutes later on Amazon! (this is not a lie, this really happened, ironically!) This was an alarming process, and showed me firsthand that Macy’s is in fact stuck in the past. Amazon definitely has something to do with the decline in their sales and profits, but it seems like Macy’s is rolling over and allowing them to steal their market share. Rather than adapt, they have decided to remain true to their old ways and business model. This mentality was highlighted when they elected to promote longtime president Jeffrey Gennette as their new Chief Executive Officer rather than outsourcing for new and younger talent who could have taken the company in a new, fresher direction.

    Another company who refused to adapt to the time, that I personally experienced becoming outdated, was Blockbuster. Similar to Macy’s they were a brick and mortar store that refused to evolve. They were run out of business by Netflix, a company that mailed movies straight to your house once ordered online. Fast forward to today, and Netflix has continued to evolve, becoming a multi platform streaming service that is used in almost every house hold in America, and even across the world. Blockbuster closed down for good, and if Macy’s continues to resist change, they will soon go as well.

  40. Amanda Skalski May 26, 2017 at 5:16 pm #

    As an accounting business major, I loved to analyze these kinds of articles about the general business of a company. I especially enjoyed this one on Macys because Macy’s is a department store; they sell brands in their stores. Macy does not own their own brand but they depend on brands to bring in their buyers. With the fact that Macy sells high-end brands it does not surprise me that Macy’s is closing many of their stores just like the article stated. Macy’s has very high prices due to the fact they need to pay the brand for the merchandise they buy plus make a profit for themselves.
    Online shopping has become a much easier and cheaper way to shop. Macy may blame Amazon for this but Amazon isn’t the only reason for their stores closing. You can go on Macys at any time and get discounts and a general discount that you would not likely see in the store. Customers prefer to shop like this, it is quicker, more in stock, no long lines and it is usually cheaper. This benefits the stores because people are more likely to buy more online than in the shop if they feel they are getting a better deal. Personally, I prefer to shop online if I want to shop at Macys especially for their handbags. I am constantly getting twenty percent off coupons via email plus whatever the sale price is for the handbag that I always feel is the cheaper opinion when shopping especially for a high-end brand. So yes, Macy’s did kill Macy’s.

  41. Joe Sada February 15, 2018 at 6:04 pm #

    We are probably experiencing the biggest downfall of store sales we have seen in a long time. People just aren’t going into stores and buying the merchandise they want. They would rather get everything they want shipped to their house without having to put clothes on or go to the store and pick it out. This is the direction our generation is going. Everyone is so invested in technology, that it is really destroying all the department stores we know and love. Walking into a Macy’s really used to be a very common thing to do when one needed to go shopping. Macy’s used to be so crowded and always busy that it was even hard to find a parking spot in their area.
    According to the article, the author stated that he went into a Macy’s retail store in a Paramus, NJ mall during holiday season and was not impressed with the overall of his experience. When people used to shop at Macy’s, majority of them were very satisfied customers that kept coming back. Everyone would hear about Macy’s when it came to the holiday season and where gifts were bought from and that just does not seem to be the case anymore. Not just Macy’s, but other huge department stores that have been around for decades and were so successful, are now diminishing. It should not come as a surprise to anyone that more than 100 stores have closed and in the future, more will come to close. The department stores that we all went to for every special occasion, holidays, or just to casually shop have really taken a backseat to online shopping and shopping in general.
    With the emergence of online shopping and technology, Macy’s and the other department stores have really taken a hit. Majority of people want to sit in the comfort of their own home and look for whatever they have to order and deliver it right to their doorstep. An argument could be that people can shop on Macys.com and still shop for whatever they need without going to the store, which is true, this does happen, but more people head to competitors like amazon to get everything all together. Who would not want to shop for everything they need all at one time and make it come with their free two day shipping window. Amazon did not destroy Macy’s though, if it wasn’t for Amazon, another company like Amazon would of emerged and took over the whole industry.
    Overall, it is crazy to see the department stores we all grew up with slowly starting to dwindle before our eyes. Technology has really been bittersweet for most people. Of course we love to do online shopping at a convenience, but we also enjoy visiting our beloved stores that we have been visiting for all these years. It’s a smart decision moving forward for Macy’s to make something like a Nordstrom Rack because it will bring different consumers who still want high quality products, just at a lower price. If they want to stay relevant, they have to adapt to the standard that we have today or they will tank further then they already are. Online shopping is a huge priority for most people and stores are clearly taking a hit from it. In the near future, stores will continue to decline if a solution is not found.

  42. Nathaniel Valyo February 16, 2018 at 12:08 am #

    While reading this article, I tried to think of the last time I purchased something inside of a Macy’s, and I could not remember. For the longest time, when someone would say the words “department store,” Macy’s would instantly come to everyone’s mind. Everybody associated Macy’s with Thanksgiving because of its world-famous parade with the flagship giant balloons. “Christmas shopping” and “Macy’s” were once synonymous. All of a sudden, around the rise of Amazon, Macy’s stores started disappearing, and soon everyone would forget those cherished times. I would predict that I stopped going to Macy’s just as I started using Amazon as my go-to destination for my shopping needs, a few years back. I must add, though, that I did not see anything wrong with Macy’s; it was just infinitely easier and more appealing to do my shopping online rather than in a store. But, this article suggests that it was not just Amazon and e-commerce that led to Macy’s destruction: Macy’s was doomed for self-destruction all along.

    The article cites Macy’s lack of new and exciting products and poor organization as the main sources of its problems, and that they could once get away with it before the rise of e-commerce. But now, in a society where everyone buys their items online rather than in brick-and-mortar stores, Macy’s problems are exacerbated. To make matters worse yet again, people who do buy from brick-and-mortar department stores are buying from places like Marshalls, T.J. Maxx and Nordstrom Rack instead of Macy’s. Couple that with Amazon taking the retail world by storm, and Macy’s is left on dwindling life support.

    Unfortunately, the “Magic of Macy’s” is vanishing. It is the end of an era that many kids my age grew up in. I cannot argue much for a revival of Macy’s given that I stopped shopping there years ago and am therefore part of the problem, but a part of me is still sad to see it go. Just recently, the large Macy’s store in downtown Pittsburgh, my hometown, closed up shop for good, and it was quite sad. Perhaps Macy’s could do a better job of listening to their shoppers demands in order to increase their chances of success, or at least bring in some fresh faces in management to spark a new era instead of promoting old executives, like the article suggests. When it is all said and done, however, if Macy’s does not meet the industry’s strict demands, Amazon may soon claim another victim without much of an effort.

  43. Mathew Gonzalez February 16, 2018 at 11:10 am #

    For the new generation of shopping, in-store experiences are quickly dwindling as more consumers take their business online for quicker transaction and more effective price matching. Macy’s has suffered from this experience as its stock has dropped 16% after its unimpressive holiday sales, thousands of job cuts, and the shutdown of multiple stores. Besides the uprising of Amazon.com, Macy’s has already been on the decline for its unorganized departments within their stores, such as their store in Paramus, NJ, prices that can’t compete to the easily accessible ability to price match online, and attempt to help improve the image of their stores by offering more upscale merchandise. Acknowledging the decline of consumers shopping in store compared to online, Macy’s has tried to adapt by pouring hundreds of millions of dollars into their e-commerce operation. These attempts are trying to upmarket Macy’s, but with their recently pour results in sales are downsizing. If it wasn’t for the goliath that is Amazon.com, another big retailer would’ve triumphed over Macy’s
    As an individual who has been raised alongside the evolution of e-commerce, I find online shopping to be much more effective than in-store shopping. Not only can you easily compare prices of a product from other distributors/retailers, you can also view a wider selection that wouldn’t be in-store and, thanks to data mining, be offered similar products that you will be interested in based off your shopping patterns. Amazon is definitely a mastermind at using data-mining to offer their own selection of products to increase sales on their website. Macy’s has been reacting poorly to the evolution of the market, by adapting to short-term plans rather than long-term. Macy’s should have created an online experience for their shoppers the moment their sales declined to other competitor’s online persona. Following the law of cost valuation, Macy’s attempt to attract new consumers from their new store called “Macy’s Backstage” is an ineffective action, and they should be focusing on keeping the customers that they already have.

  44. Tyler Grzybowski February 16, 2018 at 2:29 pm #

    Amazon has begun to take over many industries as the ease and accessibility of online shopping has made it far more convenient to simply order the goods you need and have them delivered right to your door. What started as a company that basically only shipped books has now grown to encompass products from electronics, clothing, sports equipment, food, and almost everything in-between. Amazon has created such a vast and expansive infrastructure that it has begun to dominate brick and mortar retailers like Macy’s. Amazons approach to no hassle shopping and low prices on what is basically the largest selection of goods anywhere has proven to be massive success. In fact Amazon is expected to soon overtake Macy’s in sales of clothing. Macy’s struggles have definitely been on the rise as they continue to fall behind on their approach to selling their merchandise to consumers. After announcing holiday sales for last year and plans to lay off thousands of the company’s workers Macy’s stock plummeted 16 percent. Macy’s points out that changing customer behavior is to blame for its sluggish sales however that might only be one of the many issues the huge retail giant is facing when it comes to why it can’t grow its sales. Macy’s is currently looking to close at least one hundred of it stores saying another issue is it has too many stores located in underperforming areas. While that may help give Macy’s a boost the one big issue that they haven’t been able to fully address is how their stores operate and what items they sell. According to the article a visit to a Macy’s in New Jersey showcased the lack of organization and product placement in the store. This along with the fact that Macy’s selection of merchandise is not unique or different enough from what can be found online to entice customers to shop there. The more Macy’s predicament is examined it becomes more obvious that Amazon might not be what’s bringing Macy’s down but Macy’s itself. The stores haven’t changed from how they operated over a decade ago and without the effort to change along with the time Macy’s was just waiting for someone to come in and pull the rug out from under them; it just happened to be Amazon. The company’s one saving grace may come in its effort to get into online retail. Macy’s has been pouring hundreds of millions of dollars into e-commerce and has also started to reconsider its product offerings and create a more unique clothing line and experience for its customer base. Only time will tell if Macy’s can turn its operations around or if its decade of theoretically sitting still will just be too much to recover from as Amazon and other retailers like Walmart constantly innovate for what the future holds.

  45. Samara Simboli February 16, 2018 at 2:55 pm #

    Online shopping or e-commerce, has become an everyday activity for many of us myself included. Going to a brick and mortar store can be inconvenient and it costs money to drive to whatever store that you need something from. Sites like Amazon.com have made shopping for almost everything so much easier for people to order things that they need from the comfort of their home, and they can get exactly what they want. Retailers like Macy’s do have an online presence, but you are not able to go to Macy’s website and buy everything that you need like you would from Amazon. For Macy’s they have seen a decline in sales partly from sites like Amazon, but also from not having unique clothing or shoe options in stock. If you were to walk into a Macy’s store right now you could probably find the same clothing as you would if you walked into any other department store similar to Macy’s. Macy’s disorganization in the stores probably was not a huge help when it came to consumer’s entering the store and getting what they needed and leaving. If the consumer is unable to find help or find the item that they are looking for, they will most likely leave and might decide to never return to the store.
    To me, going to a Macy’s store is more trouble than its worth as I can never find what I am looking for and it looks the same as it did when I was eleven years old. Though a visit to the flagship store at Herald Square in New York City, you would not guess that Macy’s was on the decline. But even that store was disorganized and more hectic than what I imagined a flagship store to be, knowing the volume of people that would be going through their doors every day. The risk of going into Macy’s and not finding what you want and wasting time is something that a lot of people now do not want as many people to have very busy schedules and might not have time to walk into a traditional store. If you notice grocery stores are shifting more to the Peapod idea that Stop and Shop used to deliver food to your house when you want it. Personally, I like the convenience that comes with online shopping as I can compare prices from different retailers and decide which site has the best deal instead of going from store to store in person I can automatically do it from home. Also, the length of time spent waiting on lines in Macy’s, in particular, is crazy, Amazon might have some impact on department stores’ losses, but the time spent waiting and waiting has driven consumers including me away from going to Macy’s. While I am unable to say the same of Macy’s upper line store, Bloomingdale’s, which always is organized and someone is always ready to help. I do like going to the physical store to get an idea of what size I might need as I tend to vary, and sometimes the image on the screen is not the same as what the physical product looks like.

  46. Ryan Mack February 16, 2018 at 5:21 pm #

    It seems that everywhere you go, there are brick and mortar stores closing leaving vacancies in shopping centers or malls once bustling with shoppers, especially during the holiday season. Even the once mighty and large department stores, who used to be anchor tenants of the malls, are shutting their doors and dying a somewhat-slow death. Even Toys R Us filed for bankruptcy and is in the process of closing some stores. This is caused by two factors: the growth of online retail and a change in what consumers are looking for.

    You could order almost anything you want or need to buy online and have it delivered to your door from groceries to cars. Many local grocery stores offer delivery for groceries or even order and pick up. With picking up, you have to go to the store but you aren’t spending time walking around inside the store, therefore less likely to buy things you don’t need. Amazon has also expanded into grocery delivery with Amazon Fresh, boosted with their acquisition of Whole Foods for $13.7 billion in 2017. In some instances you can even order a car online and have it delivered. Some dealerships, if they’re local, will agree to deliver the car to your house. You just don’t get to look at other vehicles or take a test drive. Toys R Us had also seen poor performance as it loses to Amazon’s offer of shopping with ease and convenience as well as the digital marketplace for video games and online content. With the growth of online shopping, retailers need to find ways to get people to go to malls for things they can’t order online.

    Several malls are struggling to fill the vacancies left by the closing of stores like Macy’s and Sears. Most of the leasable space is now being filled with things like specialty supermarkets, restaurants, and movie theatres. The past holiday season hasn’t been good for stores like Macy’s. Their stock dropped sixteen percent after announcing disappointing holiday sales performance. The department store said they will cut thousands of jobs and close 100 locations, and it’s possible that that number will get larger within the next year. I had even went to Macy’s this past Christmas and the store was in disarray and unorganized. Not being able to find the product I was looking for, assuming it could be cheaper at Macy’s, I ordered it online from Adidas anyway. Macy’s market cap roughly a decade ago was almost three times what it is now dropping from $24 billion to $9 billion. Amazon isn’t entirely to blame for Macy’s decline, if they hadn’t come along and changed the game, another company would. Macy’s, though, is trying to adapt now in investing millions into developing its e-commerce operations. Brick and mortar stores are also getting a bit of change when Macy’s implemented a concept called Macy’s Backstage in 2015, an outlet which sells off price products. Macy’s other sections such as their home products, are also losing out to Amazon. You can buy a mixer online. As Amazon continues to expand into almost every consumer market available and stores like Macy’s continue to lose their market share, many people worry about what the retail world will look like when the number of competitors shrinks and how pricing will be affected. The nature of business is like the nature of the natural world, adapt or die.

  47. Mary Margaret Miller February 16, 2018 at 7:30 pm #

    Macy’s has been in the news lately since they made their announcement a few months back regarding the closing of 100 stores. The company had been ignoring that they were on the decline since 2008, and ten years later, their losses are catching up to them. As other competition stores have changed the way they merchandize and layout their stores, Macy’s has simply given up. A company that was once seen as timeless, is now becoming old news and undesirable to shop in.
    CEO Terry Lundgren has decided to step down after being with the company for a little more than two decades. Lundgren feels that companies such as Amazon is putting their store out of business, however customers and employees seem to argue his notion. Macy’s has recently adopted the principle idea that they must create “Last Act!” sections in their stores to draw customers to their discounted products, however it is failing miserably. For anyone who has visited a Macy’s recently would agree that all of their stores look like they are in disarray, and their “Last Act!” section making it the worst of all. The racks are packed so heavily, and the floors are littered and piled with merchandise nobody is interested in buying.
    Nordstrom commented on Macy’s failing by saying that having an overwhelming amount of clearance cheapens a store’s brand, which is why Nordstrom came up with their sister store Nordstrom Rack to house their discounted merchandise. This has led Macy’s to fire back by opening clearance stores with the name “Backstage,” which has somewhat helped the company financially. With “Backstage” and “Last Act” being profitable in lower income neighborhoods, it remains unknown if it will be a successful enough payout for the retailer.
    Due to lost sales, Macy’s has been branching out to other retailers to rent sections of their stores. Companies such as Lens Crafters and Bluemercury have bought space in a few Macy’s stores, and other brand shops are about to pop-up within the major retailer as well. Macy’s figures that as long as the space is occupied and they are able to obtain rent from these outside companies, they will be able to avoid closing more stores. It is unknown whether or not this method of business will pay out in the long run, Macy’s must repair their company and what the shopping experience is really like in their stores. If they have too many outside companies enter their stores, it could damage the retailer even more.
    Regardless, e-commerce holds a major threat against retailers, but major retailers such as Macy’s must determine how to attract consumers to their stores. As Macy’s leaves their stores in deplorable condition, people such as myself have stopped shopping there. The company’s buyers have not been able to keep up with the latest trends, which has driven younger generations in particular away from their stores. The company has added more brands that millennials are interested in, with the hopes of regaining profits that were lost. While Macy’s still has the potential to redeem themselves, time will only tell if their new CEO Jeff Gennette will be able to redefine the face of the company; making it a more luxurious experience to shop in their stores once again.
    Schlossberg, Mallory. “We Went to Macy’s and Saw Why the Brand Might Be Headed the Way of Sears.” Business Insider, Business Insider, 13 July 2016, http://www.businessinsider.com/macys-has-lost-its-premiere-positioning-2016-7.

  48. Moniqua Prince February 16, 2018 at 8:10 pm #

    Look oh look. I see Amazon creeping around. I see Amazon creeping around the corner; taking business from Macy’s. Whose fault is it? As the article points out, I agree that Macy’s is mostly at fault. Just recently, I, myself, made a stop at a Macy’s department store. What did I find? Clothes all over the place. No variety of clothing (They had no Nike clothing except for a few shirts and yoga pants). Why would Macy’s expect a consumer like me to want to buy any of their items when I cannot even find a certain clothing piece among the mess of clothes, and when they have no variety in different brands. To top it off the style of clothing did not cater to people of my age. Why would I want granny swim suits? It is not enough to have just a few clothing pieces from each brand, nor is it enough to have only a few styles catering to people my age. We need variety and a chance to mix and match different pieces together to display our style.
    On another note, after reading the article I feel that Macy’s needs to find someone with fresh new ideas to take ecommerce by storm. This new age and time is for people who will succeed at marketing through social media platforms and more. If you do not have a strong online presence, then you will not succeed. Who better to take over than someone from this new technological generation?
    In all, I believe that Amazon is not much at fault other than having a better strategy than Macy’s. Amazon has marketed and expanded tremendously since first starting out. Not only that, the prices on Amazon can be more agreeable than some. Amazon is also convenient for people who wish to purchase multiple items of different variety in one place while at home. I can purchase a table, palm tree, books, and clothing from Amazon while sitting down and eating pasta. What more could a consumer want?
    If Macy’s wishes to increase their profit to a profit they made in the past, they must make major changes. If not, Macy’s most likely will not be around in the next upcoming years. Welcome Amazon. And goodbye Macy’s.

  49. Kevin Dougherty October 22, 2019 at 1:17 am #

    This article is about Macys and how it has been on the decline. The article talks about amazon and how amazon is not the one that killed Macys but it was them themselves who killed them. The article goes on to talk about what macys has done wrong. First of all Macys are messy and are unorganized, even in the neatest Macys they are still unorganized and hard to find stuff. Secondly the article talks about how they visited a Macys in 2016 and it looked the exact same in 2004. Macys has failed to adapt to the changing world and has kept the same business model and layout for the past years.
    The main thing that interested me in this article is how it compares it to amazon and it said that amazon was not the thing that destroyed Macys. I find this to be very interesting because it is true. While amazon may be the reason people do not shop at macys they are not what caused macys to die. Amazon had revolutionary ideas that changed the way shopping was to be done. You can go online and order almost anything you want at the touch of your fingertips. Prior to amazon you could not really do this online. These large retail stores like macys had competitive advantages because they were close to a one stop shop. You could get numerous different products and things you need in one store. Once amazon was introduced and gained popularity people realized there is no reason to go to these large retailers.
    Amazon innovated to change consumer desires and macys didn’t adapt to this change. It
    was macys that killed themselves by not taking proper steps to grow. This question on who killed who in terms of corporations goes far beyond just amazon and macys. To start off I will mention a company that was in a similar situation but adapted properly and still exists and is doing well to this day. Best buy which is electronics retailer was in a similar situation. BestBuy’s sales were falling as well as their stock and it was not looking good for them as a company. Best Buy hired Hubert Joly as the new CEO and they turned the company around. Today best buys sales and stock have gone significantly up and the company has turned itself around. This goes to show that new competitors are not at fault for companies dying. It is the companies themselves that are and they have to adapt.
    There are numerous companies and industries that are going through this or just have gone through this, and it is something that will continue on forever. Blockbuster was forced to close down once Netflix created a new innovative idea. The taxi industry is struggling with the introduction of uber and lyft. Overall this cycle of companies innovating and other companies not adapting will never end. One day its likely well see the end of amazon, Netflix, and uber all of the big companies that have replaced other big companies will end themselves due to newer technologies and innovative ideas.

  50. Ryan L October 22, 2019 at 12:14 pm #

    The world of retail is changing drastically, and this is definitely visible in this article about Macy’s and how they are seriously downsizing. Macy’s cites changing customer behavior as the main reason for this, but I (along with the author of the article) have a different idea, it is Macy’s inability to adapt and change that is the reason why they are failing.
    The “blame game” is a technique used by businesses and people alike to explain their shortcomings, but I think that is the absolute wrong way to go about it. In a rapidly changing, highly competitive environment like retail, adaptation and change should be a regular occurrence. New styles emerge, fashion trends change, even outdated trends resurface. So how is a change in the business model any different. If Macy’s was doing proper research, and looking at the direction of retail, they could have seen the progression of online business and projected the potential impact that this might have in their own business. Unfortunately, they chose not to do this, and it is not something that can be done after the fact. Now that Macy’s has fallen behind, largely by their own doing, it will be nearly impossible for them to catch up.
    This is not an isolated issue, many businesses in the United States have shown this trend of complacency that ultimately led to their downfall. One perfect example of this is Blockbuster Video. This was a company that used to rent out movies to customers. They had many storefronts where the customer could walk in, choose a movie from the hundreds in inventory, rent it, and bring it back in a few days. This was a great business for many years, and they even handled some minor changes in their business like the transition from VHS tapes to DVDs. Where they really ran into problems was when Netflix emerged as a player in the movie distribution market. Rather than really analyzing the risk of this new market player, Blockbuster simply laughed at them and said that they would never be anything to worry about. They even went so far as turning Netflix down when they offered themselves up for sale to Blockbuster for only 15 million dollars (Netflix is now worth billions). This, like the case of Macy’s, seriously hurt them, and ended up causing them to go out of business.
    These two companies serve as a learning opportunities for other businesses. Technology moves faster than anything the world has ever seen, and now that it has worked its way into nearly all areas of business, they need to be ready to handle it. This is an issue that the business world in the United States will need to address sooner rather than later. Now, don’t get me wrong, many businesses are very good at staying up-to-date with their technology and looking at new ideas that might hurt or help their business. But many do not, and the companies that don’t are not likely to be around very much longer. Businesses can not stay in the past, and deny the progression of the future, unless they want to end up like Blockbuster or Macy’s.

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