Decline of Macy's, Kroger's (Columbus, Dayton: homes, construction, organic)

[motorman]

I just happened to notice this Kroger news in today's Cincinnati Business Journal:

* https://www.bizjournals.com/cincinna...on-kroger.html

Even though the article, itself, is locked, it provides enough information to indicate that Kroger is far from going down. If anyone is a CBJ subscriber and would care to elaborate on the the contents of the article, it would certainly be welcome.

[Coseau]

Macy's biggest threat is Amazon. Macy's is trying to expand their online presence to counter that threat. It remains to be seen whether Macy's can weather the storm because Amazon has taken the business strategy that Walmart has successfully used of selling their merchandise at a financial loss until their competitors are bankrupted out of business. Then the question will be how long can Amazon can sustain itself on profit margins less that a grocery store against the likes of Walmart. This is a reason why Amazon has to resort to deceptive pricing in order to make people think they are getting a good deal online at Amazon

Amazon List Prices 'Bogus,' Consumer Watchdog Says | Money

https://gizmodo.com/5888981/amazon-m...u-fake-savings

https://www.nytimes.com/2016/03/06/t...ning.html?_r=0

https://www.wsj.com/articles/amazon-...ada-1484161028

https://www.recode.net/2017/1/11/142...eading-pricing

https://www.theatlantic.com/magazine...us-all/521448/

[Sarah Perry]

Originally Posted by Coseau

Macy's biggest threat is Amazon. Macy's is trying to expand their online presence to counter that threat. It remains to be seen whether Macy's can weather the storm because Amazon has taken the business strategy that Walmart has successfully used of selling their merchandise at a financial loss until their competitors are bankrupted out of business. Then the question will be how long can Amazon can sustain itself on profit margins less that a grocery store against the likes of Walmart. This is a reason why Amazon has to resort to deceptive pricing in order to make people think they are getting a good deal online at Amazon

Amazon List Prices 'Bogus,' Consumer Watchdog Says | Money

https://gizmodo.com/5888981/amazon-m...u-fake-savings

https://www.nytimes.com/2016/03/06/t...ning.html?_r=0

https://www.wsj.com/articles/amazon-...ada-1484161028

https://www.recode.net/2017/1/11/142...eading-pricing

https://www.theatlantic.com/magazine...us-all/521448/

Speaking only from the perspective of a consumer, the notion that Macy's could somehow expand sufficiently online to salvage what's left of their brick and mortar business seems preposterous. I looked at their website recently. Same old dated, second-rate feel as their stores. Limited selection. Nothing I really wanted to buy.


Between us, my husband and I've bought probably hundreds of items from Amazon. At our age and physical condition, we have zero interest or stamina for running around trying to find a particular item. If we can't be pretty sure we can just walk into a store locally and pick it off the shelf, we just use our Amazon Prime account. Although the selection is comprehensive and the speed and accuracy of everything about their delivery system is remarkable--nearly perfect--a couple times we've run into a problem involving an independent affiliated seller. We were contacted within an hour or two of making Amazon aware of the issue, by a real person who was clearly authorized to handle it. In a recent case of a probably shady seller, Amazon itself immediately refunded the purchase price upon being told the details of the situation.


I'll pay a few bucks more to give my business to a company which makes me feel good about being a customer--and as I noted in a recent posting, I'll stop shopping altogether at one which makes me feel bad. I suspect I'm not all that unusual. This is about a lot more than price.

[PerryMason614]

Originally Posted by Sarah Perry

Speaking only from the perspective of a consumer, the notion that Macy's could somehow expand sufficiently online to salvage what's left of their brick and mortar business seems preposterous. I looked at their website recently. Same old dated, second-rate feel as their stores. Limited selection. Nothing I really wanted to buy.


Between us, my husband and I've bought probably hundreds of items from Amazon. At our age and physical condition, we have zero interest or stamina for running around trying to find a particular item. If we can't be pretty sure we can just walk into a store locally and pick it off the shelf, we just use our Amazon Prime account. Although the selection is comprehensive and the speed and accuracy of everything about their delivery system is remarkable--nearly perfect--a couple times we've run into a problem involving an independent affiliated seller. We were contacted within an hour or two of making Amazon aware of the issue, by a real person who was clearly authorized to handle it. In a recent case of a probably shady seller, Amazon itself immediately refunded the purchase price upon being told the details of the situation.


I'll pay a few bucks more to give my business to a company which makes me feel good about being a customer--and as I noted in a recent posting, I'll stop shopping altogether at one which makes me feel bad. I suspect I'm not all that unusual. This is about a lot more than price.

I picked up some shorts I ordered from JCPenney last night and I don't see how they're going to be able to make money doing online business. I just don't think they're set up to make all the pieces work together efficiently and if you can't do that, you can't make money. I'm sure Macy's (it's still Lazarus to me) works the same way.

I had to go to a checkout counter. They had three people who looked like they were dedicated to on-line standing around doing not much. My order came in three separate shipments judging from the emails they sent me (Clearance St. John Bay shorts). I overordered because I wasn't sure of size/fit, and will be bringing about half back.

The girl had to run to the other side of the store to pick up my packages, which looked like they were in three different locations. While waiting for her to inefficiently pick my items, the other girl tried to sell me on a JCPenney credit card.

Like I said, I can't see where they can operate efficiently.

That said, I really do like Walmart's online setup.

[motorman]

Originally Posted by motorman

I just happened to notice this Kroger news in today's Cincinnati Business Journal:

* https://www.bizjournals.com/cincinna...on-kroger.html

Even though the article, itself, is locked, it provides enough information to indicate that Kroger is far from going down. If anyone is a CBJ subscriber and would care to elaborate on the the contents of the article, it would certainly be welcome.

Additional and similar positive information has just become available regarding Macy's:

* https://www.bizjournals.com/cincinnati/news/2017/08/07/macys-and-kohls-bonds-gain-ahead-of-us-retail.html

[SWOH]

Good to see that news about Macy's.

All I have to say is Macy's isn't Kmart yet, and up until ~2013 Macy's was the retail darling on the street having successfully weathered the recession and for coming out better on the other side of it.

So it seems to me a turnaround, or reinvention, is not only possible but plausible and if they are intelligent they are determining the need for it. Macy's isn't a sinking ship yet, even though many seem to be heckbent convinced they are.
_________

Side note.

To me it seems smart to add their Backstage concept to every non-class A store in their portfolio. With this strategy full priced offerings would only be on the first floor, making consumers most likely to walk past those on their way to the clearance items upstairs. In the lowest opportunity markets, eliminate all full priced offerings and put furniture/appliances on the first floor, and clearance items on upper floors.

[PerryMason614]

Originally Posted by SWOH

Good to see that news about Macy's.

I don't even like the name Macy's. Lazarus and all the other local nameplates were much better.

[Sarah Perry]

More interesting commentary here:


Which Retailers Can Survive the Latest Amazon Threat?

[PerryMason614]

<i>Kroger could be at risk for disruption, but it too has gas stations at its stores, which Hottovy thinks is a plus, at least in the short term. A lot of Kroger's customers fill up at the store's stations and then go inside to buy groceries. </i>

I think most of these analysts must live in New York and have never shopped in most of these places. NOBODY stops for gas at Kroger, fills his car and says, "Hey, I have to pick up some groceries." The gas island is too far removed from the store.

In other words, Kroger gasoline is not a destination. You use their gas island as a convenience, or if you have Kroger points, or if you are just driving by and don't care about gas brand.

If someone want's convenience store items, they're not going to get gas at Kroger and trudge through 80,000 square feet just for a loaf of bread. That's why Kroger is building out convenience stores in many places where it has supermarkets.

[jlawrence01]

Originally Posted by PerryMason614

I think most of these analysts must live in New York and have never shopped in most of these places. NOBODY stops for gas at Kroger, fills his car and says, "Hey, I have to pick up some groceries." The gas island is too far removed from the store.

In other words, Kroger gasoline is not a destination. You use their gas island as a convenience, or if you have Kroger points, or if you are just driving by and don't care about gas brand.

If someone want's convenience store items, they're not going to get gas at Kroger and trudge through 80,000 square feet just for a loaf of bread. That's why Kroger is building out convenience stores in many places where it has supermarkets.

I read a daily newsletter from a supermarket analyst several times a week. We lives in Connecticut and spends most of his time there. In the summer, he lives in Portland, OR. If you read everything he writes, you would think that 80% of Americans are riding Uber/Lyft, ordering all of their groceries online, and the like. He cannot believe that things that are commonplace on the coasts do not exist or are nor prevalent in flyover country.

Second, Kroger's gas stations are a disappointment. They just opened up one that is a full three blocks away from the local Fry's store. If it was MY store, they would have had a lot of convenience food, take home dinners and the like. Why? A lot of commuters commute 20+ miles and would like to pick up something for dinner. Stopping at THAT Fry's store is a 30+ minute time commitment. They'll get the gas business BUT other stores will get the convenience store business.