Introduction Sears Holdings Corporation and Macy’s Incorporated are parent companies of two of the most popular chains of department stores in the United States. Both have numerous store throughout the country and have expanded their services online as well. Regardless of their popularity, there are many other retails stores that offer similar products which increases the competition. Competition, competitive offers, merchandise availability and many others are some of the main concerns these companies face. Technology and increase in popularity of competitor’s store has affected Sears and lowered the stock price of the company. On the other hand, Macy’s has been struggling with maintaining continues high sales. This paper will explore these …show more content…
Both companies’ have gad a decrease in revenue in the past reported cycle. Sear’s decrease is greater and Macy’s and having a negative income is not favorable for the company either. The company had a 1% increase in cash, but is not enough for the size of the company. Macy’s revenue has been increasing the las few years, but like Sears, the cycle that ended in January 28, 2017 reflected a decrease profit. The company had a 2% decrease in Net Income. The company’s Assets and Stockholder’s Equity decreased as well. However, Macy’s is in a better financial status than …show more content…
The company was formed in connection with the March 24, 2005 Merger of these two companies. Holdings is an integrated retailer that operates a national network of stores, with 1,430 full-line and specialty retail stores in the United States, operating as Kmart and Sears (Sears Holdings Corporation. 2017). Sears Holding recorded a net loss attributable to Holdings' shareholders and $1.1 billion for 2016 and 2015, respectively. The total net loss was $887 million for 2016 and $953 million for 2015. According to management, the decrease in adjusted net loss for the year primarily reflected a decrease in selling and administrative expenses, partially offset by a decline in gross margin, which was driven by the decline in revenues and a decline in gross margin rate (Sears Holdings Corporation.
Annual Reports and Press releases The annual reports and press releases of both companies slightly differ though with a portion of similarity. Although, Home Depot’s annual report is composed at the headquarters of giving an inclusive report on all of the retail stores in the world, through the company’s website these reports posted can be found. Therefore, this being impartial and all-inclusive to an extent of analysis it would have to be done on the contrasts, similarities, profitability, and performance of different retail stores in different regions or countries. However, the shareholders and customers analyze the summary provided to know the general performance.
The focus of this paper is to profile an authentic assessment on Kohl’s Corp. Kohl’s was organized in 1988 and the state of incorporation is Wisconsin. The nature of Kohl’s operation is a family-based, value-angled department store that focuses on selling modestly priced selected national brand apparel, including but not limited to footwear, various accessories, beauty and select home products. Their stores usually carry a steady merchandise assortment based regional preferences and demographics. Kohl’s has a website for shopping in store, as well as items only available for only on-line purchases. Kohl’s focus is to cater to in-store accessibility including locations close to home, nearby parking, trouble-free accessible entry, well informed
Massachusetts Stove Company Strategic Options Introduction Massachusetts Stove Company is one of the last six remaining wood burning stove companies after recent changes implemented by the EPA. Even with the declining market for wood burning stoves, Massachusetts Stove Company has continued to steadily grow and profit for six straight years. Profitability Massachusetts Stove Company is the only stove company who sells their product via mail order which provides a niche market that other companies won’t be able to enter into. Massachusetts Stove Company also has the technology in their wood-burning stoves to distinguish their brand from the ever-shrinking list of wood burning stove manufacturers.
Macy’s, on the other hand, thrived during its post-recession years. By taking advantage of its competitors woes. Although, its retailers have been struggling. Investors have been clamoring for Macy’s to unlock
Furthermore, he is also listed as owning 23.7 percent of Sears (Peters, 2014). Because of Lampert’s action, this has raised some concerns whether this has been a conflict of interest. According to Sears Holdings’ Third Quarter Nov 2014 report, they had a net loss attributable to Sears Holdings’ shareholders at $5.15 loss per share compared to $ 5.03 loss per share for the previous year third quarter. Investors are bailing out because they see instability within Sear.
Kmart has been chosen for organizational change, because of its lack in leadership and management. “Lots of companies fail because, they do not adapt to changes in the marketplace, so it isn’t necessarily surprising that Kmart descended into bankruptcy due to a series of bad management decisions (Lewis, 2003).” One major issue with Kmart is that they have failed to update their stores. Kmart management has made the decision to leave them the way they have been since the late 80’s and early 90’s. Kmart is failing because its advertising department has lost touch with its target markets (if it ever really had a target market).
Who is JC Penney in the landscape of retailers today? Is JC Penney a store of the future or a thing of the past? JC Penney stores started as the brainchild of James Cash Penney in 1902 in Kemmer, Wyoming. Originally, JC Penney stores were small, local storefronts offering a variety of merchandise.
Consumers are opting for online purchasing options that make them buy the products as per their own convenience, which includes in store pickups and home delivery. It also helps them get products that are refurbished, discounted, and have the best reviews. Therefore, the main reason for the closing of the stores is the competition between online and offline retailing. This competition has led to the rapidly declining annual income of major retailers such as Macy’s and Kohl’s. Macy’s and Kohl’s are closing their store and consolidating their strategic positions.
Dillards, Inc versus Nordstrom, Inc. FI305.001 Michelle Miller, Phillip Stowe, Daniel Carr Table of Contents Firm Overview……………………………………………………………………………….. 3 Critique……………………………………………………………………………………….. 4 Financial Statements and Ratios………………………………………………………….. 8 Firm Overview Nordstrom’s and Dillard’s are both retail stores categorized within the family clothing retail industry. They fall into this category because they each provide clothing lines for men, women and children; they exemplify the marketing trope: for “the whole family”.
The company has also reduced their costs and increased productivity. The company has also increased franchise handled business in the last three years. Company owned stores have increased 2.8% and franchisee owned stores have increased 2.7% compared to 2013. However, total revenue decreased by 4.9%. The current ratio in the balance sheet is .87 while the total cash is 17.75 million.
Research Question: Will Nordstrom Outlive Macys In The Next Decade? The retail industry equates for over a billion dollar business within the United States. Two of the biggest competitors in the market today are Nordstrom and Macy's.
Shifting shopping environments have had a major impact on the retail industry. With the rise of online shopping, customers have become more selective about where they shop and what products they purchase. Customers are no longer content with long checkout lines, missing product information, out-of-stock products, incorrect price tags, and scarce and often unknowledgeable sales staff. This has led to a decrease in foot traffic to local shopping malls and their anchor department stores. Changing demographics are also an important external trend that managers at Kohl's must be aware of.
Edward Lampert “The ineffective leader in retail segment” In this document the author will analyse the leadership qualities of Edward Lampert on the basis of his performance in Sears. Leadership can be defined as the ability to lead and organization or a group of people and help them to achieve their objectives. Effective leaders build strong communication bond with the employees and they also help the organization to increase its revenue and sales. Emotional intelligence is also an added quality of effective leaders (Batool, 2013).
Application of John Kotter’s theory on Borders In the 1990’s, Borders was a top bookselling company that was dominating the market with its competitor, together holding more than 40% of the market share. However, the company soon embarked on an unbelievable series of missteps that led to its collapse. In this paper, the different factors that caused Borders to liquidate 511 stores in the US before going out of business will be discussed. Then, solutions that could have been implemented to prevent this catastrophe will be proposed.
For instance, the world population is aging (OECD, 2013a), therefore, changes in demographic may be dangerous to solely teenage-oriented apparel firms based on the fact that competition for that segment is gradually diminishing (e.g. Coneen by design ltd). Nevertheless, these could be an opportunity for open and more flexible existing fashion retailers. Nowadays, customers are demanding for convenient shopping experience due to limited time in accessing or going to the market in person. Therefore, fashion or clothing firms with quality and easy to navigate web page will attract more customer (Chaturvedi, Martich, Ruwadi & Ulker, 2013).