Its unsecured bonds crashed 53% since Feb 14. It has been living off its real estate portfolio of “owned boxes” for years by selling them.
Neither the Fed nor the Treasury can bail out brick-and-mortar retailers.
What’s astounding many people: ecommerce growth is not leveling off, but keeps surging at blistering rates.
In total, 2,000 tech, admin, and management jobs to be cut and offices closed around the country. In addition, one-fifth of Macy’s stores to close. Brick & Mortar Meltdown.
Department stores get crushed one by one.
Ecommerce and globalization of retail crush distribution channels, wholesalers, local retailers, large retailers, prices, and margins.
“I prefer not to scare you at this point, okay. But it’s something that we’ve been able to withstand”: CEO David Simon.
The dirty secret Macy’s is hiding.
It owns 33% of the internet “cloud,” 49% of US e-commerce, and is elbowing into other sectors.
Only about half of retail is under attack from e-commerce, but that half is getting crushed.