Op-Ed | Even Macy’s and JC Penney Enjoy a Rising Retail Tide

NEW YORK, United States — Name it a Christmas miracle. Macy’s Inc. and J.C. Penney Co. Inc. — two troubled department-store chains which have been emblems of the so-called retail apocalypse — rang up wholesome gross sales outcomes this vacation season.

Macy’s stated Thursday that its comparable gross sales for November and December had been up 1 p.c over a 12 months earlier, a welcome turnabout for a corporation that has posted 11 consecutive quarters of declines on this measure.

J.C. Penney, in the meantime, reported a 3.4 p.c comparable gross sales improve over final 12 months for the nine-week interval that ended December 30.

The advance appeared to be broad-based throughout varied departments, an excellent signal for each retailers. Macy’s stated high performers included energetic attire, footwear, and coats, whereas J.C. Penney referred to as out power in its house, magnificence and high quality jewellery classes.

The department-store sector has been maybe the gloomiest nook of the retail trade lately, so kudos to those chains for exhibiting they’ve nonetheless bought some struggle in them.

That stated, I get why traders aren’t sending both inventory hovering on these outcomes. And that is as a result of I believe the expansion would not precisely replicate recent strategic genius on the a part of both firm.

Gross sales figures are nonetheless being tallied and printed, however we have gotten indicators the retail trade total most likely had its greatest Christmas season in a very long time, because of upbeat customers. A rising tide doubtless lifted all boats, together with these of Macy’s and J.C. Penney.

These retailers might want to present they will ship progress constantly in the event that they wish to persuade traders they don’t seem to be simply drafting off wider trade power.

It is also value noting that neither chain indicated Thursday it’s planning any new retailer closings. (Macy’s stated it might shut 11 shops, however these had been a part of a plan it introduced greater than a 12 months in the past to close 100 places.) January is usually when retailers announce fleet-prunings for the 12 months forward. For now, it appears, neither chain has such plans for 2018.

As I’ve beforehand famous, Macy’s has properly been extra proactive than its rivals about trimming its brick-and-mortar footprint.

However it might but want to chop deeper. J.C. Penney, in the meantime, is reinforcing the notion it nonetheless hasn’t come to grips with how out-of-sync its enormous retailer portfolio is with the digital period.

By Sarah Halzack; Editor: Mark Gongloff.