This is amazing. How we shop and where we shop have really changed. Who would have thought Macy’s is going to close 1,000 of its stores in order to stay competitive and in profit?
Back in the days, who didn’t go to Macy’s to look around and find the next trendiest outfit or jeans? Now, it’s Amazon Prime and shopping in your underwear. The millennials have told us that they want chic clothes at cheap prices. Notice that it’s not cheap clothes. It’s chic and affordable. They want cool electronics. They also want to spend their money on experiences. Retails that listen to the millennials continue to do well, and meanwhile, those want to hold onto the old glories, they will just get punished.
That’s why H&M is doing great and JC Penney is not. Even more shocking is the long agonizing death of Sears. It’s still keeping its doors open for no reasons. Best Buy listened and it was rewarded.
If you also noticed, the high end retails continue to do well. Why? Most the millennials are not wealthy, right? Their clients come from the rich. Their business continued to do well regardless of the overall economy. You don’t see Nicole Kidman or Meryl Streep walking on the red carpet of the Oscars in some $180 dress from Macy’s, do you? If they could buy a $5,000 dress 4 years ago, they certainly can buy another $5,000 dress today. Michael Kors stock just soared 21% today. A handbag from Michael Kors can probably buy you 10 from Walmart, so pay attention, Walmart shoppers.