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Macy's: Focusing On A Helicopter View Opens Up New Doors


Macy's is and has been always a great iconic department store.

Unfortunately, retail in the US hasn't been great and performance has been slimming down for a while.

Nevertheless, Macy's is not the only one in this field who is struggling, and one should not forget that next to them is a bunch of competitors with similar issues.

Macy's (NYSE:M) is an American retail department chain which I've covered among many other US retail department stores. Not too long ago, I increasingly started to worry about the euphoria surrounding the potential of the real estate portfolio. I tried to debunk this in a lengthy article where I covered Macy's real estate potential. I think I got my point across as value was undeniably there, but the overestimation of numbers made me belief the pot with gold was mostly likely filled with something less valuable.

Yet, that is only 1 part to the story, and in this article I will specifically focus on why I think investors should also maintain a helicopter view when it comes to retail department stores, not just individual business performance.

Macy's just announced quarterly earnings and saw an impressive jump as a result. But was that the case? Authors jumped the boat jumping on either concluding whether or not the turn-around is going to be real, or whether one should be cautious:

(click to enlarge)

Source: Seeking Alpha

Macy's: Helicopter View For Every Investors

But should one look particularly at Macy's as an individual firm? What about the others? We all know the retail industry is heavily populated with large firms such as J.C. Penney ( JCP), Macy's (M), Kohl's ( KSS), Dillards...