Don't Ignore Macy's CEO: Physical Retail Is Still Important
Despite big rallies over the past year, mall real estate investment trusts (REITs) have been suffering since around 2016 or so. It's important to understand the reasons why and even more important to grasp the vital nuances of the big picture. Both of these will help to explain why the CEO of Macy's (NYSE: M) recently sang the praises of physical retail stores, even as the company looks to keep closing brick-and-mortar locations.
At one point not too long ago, the only way to buy something was to go to a physical store or call up a catalog retailer. Then the internet came along and created a whole new sales channel, propelling Amazon into a household name as it eviscerated the retail book industry.
The simple story was that it was cheaper and easier to buy online than to shop in a store, especially as shipping costs and times shrank. The model quickly migrated from books to just about every other form of product you can think of.
Source Fool.com
