What the Smartest Investors Know About Macy's Stock
Sears, once the largest and most important retailer in the United States, floundered and ended up in bankruptcy court. Macy's (NYSE: M) is not Sears, though some investors may tar it with a similar brush given the changes taking shape in the retail sector. Here's why smart investors won't make that mistake.
There's no point trying to sugarcoat the obvious issues that large department store retailers like Macy's have faced. A sizable part of the problem is what came to be known as the retail apocalypse, which is simply the increasing use of online shopping among consumers.
This is a very real trend, but the fallout was focused most heavily on the weakest brick and mortar companies, like Sears and its sister brand Kmart. They didn't keep up with consumer buying trends, and they didn't invest heavily enough in the online space, leading to their demise. Heavy debt loads sped the process up too.
Source Fool.com
