econintersect .com

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 16 November 2015

Ominous Signs From Macy's And Nordstrom's

by Rick Ackerman, Rick's Picks

Executives at both Macy's and Nordstrom's profess to be mystified by the sharp downturn in business since July. The CEO of the former, thinking positively, promised some big surprises in the way the upscale chain meets the problem.

We should all wish him good luck, since he'll be dealing with nothing less than the slow asphyxiation of brick-and-mortar retail in this country. He's right in pointing out that many pessimists have been sounding the death knell for department stores for many years. But just because a few upscale chains have survived thus far hardly guarantees that they'll be around in another ten years. It'll be too bad, too, because Nordstrom's in particular seems to be doing everything right. Whenever I've bought something from the local store, I've always been impressed with how hard they try. Their policy on returns is extremely generous, their sales people are knowledgeable, polite and well groomed, and the merchandise is high-quality and fashionable. Despite this, the store seems empty most of the time.

Macy's is the more aggressive marketer of the two, but like Nordstrom's, they are having serious problems attracting a younger generation of shoppers who seem to prefer cut-rate merchandise and outlet stores over full-service retailers.

The respective stocks of the two companies have taken quite a beating this year. Nordstrom's shares fell 23% last week alone, from 65.80 to 50.43, and are down 35% from March's multiyear high at 73.81. Macy's stock has fared even worse, falling 47% since July, when it capped a seven-year run-up at 73.61. It was trading for 39.10 at the final bell on Friday. This left it just a hair above a key Hidden Pivot support at 38.66, but if that number were to give way, I'd infer the stock was on its way down to 31.80, or even 25.12. As for Nordstrom's, which settled at 53.96, it could grope its way all the way down to 32.43 before picking up good chart support - in this case, a key low there recorded in August 2011

Click here for a free trial subscription that will give you access to all of the features and services at Rick's Picks, including actionable trading ideas in real time and a 24/7 chat room that draws veteran traders from around the world.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Investing

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved