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Friday, January 06, 2017

Macy's feud with Trump may end with no Macy's

Retailers enjoyed their best Christmas in more than a decade following the election of President Trump, and the return of enthusiasm and hope. Sales were up 4.1% to 4.9% over last year, CNBC reported.

Except at Macy's, where sales were down 2.1% It will close 100 stores, and dump 10,000 workers.

That is because CEO Terry J. Lundgren became an SJW.

After Trump entered the presidential race, Lundgren very publicly voided his company's contract with Trump.

From CNN on July 1, 2015:
"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."
In response, some customers ended their relationship with Macy's.

From TMZ on July 13, 2015:
Sources connected to the department store tell TMZ, Macy's has received complaints from approximately 30,000 customers since ending its relationship with Trump nearly 2 weeks ago.
We're told the store has been "inundated with complaints" from customers who believe the department store is unfairly punishing Trump for his views on immigration.
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.

And 2016 was even worse.

From CNBC:
Macy's shares tumbled more than 9 percent after the market's close Wednesday after it posted disappointing holiday sales and released the locations of 68 of the 100 stores it plans to close as it looks to turn around its performance.
Macy's comparable sales fell 2.1 percent in November and December, which was at the low end of its previous guidance. It maintained its 2016 comparable sales guidance of a 2.5 percent to 3 percent decline, but expects full-year diluted earnings to be in a range of $2.95 to $3.10. It had previously been expecting $3.15 to $3.40.
Macy's outgoing Chairman and CEO Terry Lundgren said the company expects "our 2017 change in comparable sales to be relatively consistent with our November/December sales trend."
Macy's shares recently changed hands at $32.60, down $3.24, or 9 percent.
This was not President Trump's doing.

Lundgren failed as a CEO by putting politics ahead of profits. Business should come first, last, and always in business.

 @@@

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14 comments:

  1. What? The SJWs didn't rally around Macy's and turn out in droves to buy things and help improve their bottom line? Sad. I reckon only Deplorables will turn out to help support businesses that are attacked by the SJWs (See: Chick-fil-A.) - Elric

    ReplyDelete
    Replies
    1. SJWs mainly only spend other people's money. Rarely their own.

      Delete
  2. Next Macy's Parade Balloon theme ... Hindenburgs?

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  3. The problem I see with retailing, particularly in a store like Macy's, is that too many clothing manufacturers (of menswear in particular) copy what their competitors are doing. Rack after rack, shelf after shelf, all the goods look alike except for the tag with the brand name. Apart from the fact that this makes shopping boring as hell when no product stands out above another, it just has to be pretty damned wasteful for so many companies to produce tons of stuff that go unsold. Where do all the unsold clothes go at the end of the season? Who takes the loss on the unsold merchandise?

    Bottom line, my wife and I bought absolutely nothing from any of the local department stores or on-line this past holiday season. Not that we spent much time at the malls, but none of what we saw interested us. Our reaction was pretty much blah. On the upside, we largely avoided the year end hassle of crowded shopping centers with their limited parking spaces and the frantic shoppers who were looking for discounts.

    ReplyDelete
  4. CEO spouts off about politics, stock price craters. Remember fiduciary duty? What the hell ever happened to that?

    Stockholders have a good case to sue the moron, do they not? Make an example of him.

    ReplyDelete
  5. Also coming for NYC: http://dailycaller.com/2017/01/05/report-clinton-mulling-nyc-mayoral-run/?utm_campaign=thedcmainpage&utm_source=Facebook&utm_medium=Social

    Not so much Rudy the Rock as Clinton the Crock.

    ReplyDelete
  6. The market is a harsh mistress.

    ReplyDelete
    Replies
    1. They certainly weren't shooting for the moon, were they!

      Delete
  7. Macy's emblem is a red star. Hmmmm.

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    Replies
    1. That would explain the Macy's new season ladies fashions.

      Beach Wear: Potato Sack with Beachball.

      Business Suit: Potato Sack with Abacus.

      Evening Wear: Potato Sack with Flashlight.

      Delete
  8. I"m convinced that these retail CEOs really believe that their choice to play the SJW will increase sales. After all, all thinking people agree with them, right? They forget who their customers actually are.

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  9. Lundgren will probably have a golden parachute should Macy's board decide to get shut of him. So he won't suffer from his bad choices. Laid off Macy's retail workers will bear the brunt of the pain.

    ReplyDelete
  10. > Business should come first, last, and always in business.

    And yet post election over 400 companies have removed their advertising from Breitbart at the behest of a bunch of Hillary supporters:

    https://docs.google.com/spreadsheets/d/1i9o8CR_kjJ6mBd44k6CRZEhlXuZqq-XCCOoj-e8RJ7Q/edit#

    Some of the more disappointing ones: Kellog's, Welch's, Vanguard, Allstate, and 3M. All companies who should know better.

    Quietly pulling your advertising from a site is one thing. Allowing your company name to be used in a political manner like this is another. We've been making our future purchasing decisions accordingly. I encourage others to do the same.

    ReplyDelete