When he formerly entered the presidential race on June 16, 2015, companies understandably cut ties with him. There was a right way to so. NBC canceled "Celebrity Apprentice," which Trump had suspended indefinitely four months earlier.
Then there was the Macy's way.
Instead of simply saying it could not take sides in a political campaign, Macy's picked a fight.
From CNN on July 1, 2015:
In a statement Wednesday morning, Macy's said the company "stands for diversity" and that it had no tolerance for discrimination.
"We are disappointed and distressed by recent remarks about immigrants from Mexico. We do not believe the disparaging characterizations portray an accurate picture of the many Mexicans, Mexican Americans and Latinos who have made so many valuable contributions to the success of our nation," Macy's said. "In light of statements made by Donald Trump, which are inconsistent with Macy's values, we have decided to discontinue our business relationship with Mr. Trump and will phase-out the Trump menswear collection, which has been sold at Macy's since 2004."
Macy's carries a variety of Donald Trump brand attire, including dress shirts, neckties and cuff links. Trump has also appeared in Macy's commercials.
A MoveOn.org petition calling on Macy's to sever its relationship with Trump had collected well over 700,000 signatures as of Wednesday morning.What a nasty and unprofessional little statement that was.
That is not how you end an 11-year business relationship.
Trump called for a boycott. Why not? Macy's stock peaked at $72.31 a share on July 17, 2015 - an all-time high.
It closed the year at half that -- $34.98. On Tuesday it was still at $34 a share.
Way to go, management.
Now, 14 months later, Macy's is laying of workers and closing stores.
From United Press International:
CINCINNATI, Aug. 11 (UPI) — Macy’s Inc. will close about 100 of its 728 stores, beginning in early in 2017, the company announced Thursday.
A company statement said it will “concentrate its financial resources and talent on our better-performing locations to elevate their status as preferred shopping destinations. Stores will remain critical customer touchpoints for Macy’s, along with online shopping and mobile apps.”
The announcement comes as Macy’s revenue decreased 3.9 percent in the second quarter of 2016, and sales in the first half of 2016 totaled $11.637 billion, down 5.9 percent from the comparable 2015 period. Another Macy’s statement cited the closing of 41 underperforming stores in 2015.So it had 769 stores and was near its all-time record stock price when it decided to take on Donald Trump.
Soon it will be down to 628 stores.
When CEOs become SJWs (social justice warriors) dump their stocks.
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