Most data showed that store traffic was slow and e-commerce was fast. This new normal in retail pushed desperate Macy’s (NYSE: M) into Cyber-Monday with large discounts, some as high as 40%, as it began clearance sales. There is no explanation for discounts this large except that Macy’s has to sell off inventory which it assumes will not sell later in the holiday season.
Macy’s in particular needs to clear inventory. Its lackluster results and forecast drove its stock down. Wall St. blamed bad management, warm weather, Amazon (NASDAQ: AMZN), other troubled retailers like J.C. Penney (NYSE: JCP), which are also in a position in which they have to have a good season to maintain their claim to retailer relevancy.
Macy’s shares trade at $40, well below their 52-week high of $74.
Macy’s Cyber Monday plans offers “free shipping at $25” which is not distinct since every other retailer has aggressive free shipping deals. What Macy’s may fairly say will catcher shopper’s eyes are 10,746 clearance and closeout items. The best deals among these are items like women’s underwear by Jenni, created by Jennifer Moore. In this case and some others case , the discounts for some items are above 40%. Discounted inventory at Macys.com seems to be dominated by clothing
Macy’s used to own the demographic middle of department stores, wedged between Walmart (NYSE: WMT) and J.C. Penney on one side, and Nordstrom (NYSE: JWN) on the other. People walked or drove from store to store, based to some extent on their income. Amazon and e-commerce in general has made selecting items democratic. Voyeurs can look at items too upscale for them to buy, and shop “store to store” without leaving their homes. Glued in front of their PC or smartphone screens, the shopping experience becomes endless and easy.
READ MORE: Retailers Hiring The Most For The Holidays
“Clearance” cannot take away from Macy’s what it has already lost. Retail store brands mean less and less. Cyber Monday is for winners; and this time, the consumer wins.
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