While most retailers glided smoothly through holiday 2019, it was tough stretch for mid-tier department stores.
On Thursday, J.C. Penney Co. Inc. and Kohl’s Corp. reported that their holiday comparable sales declined, 7.5 percent and 0.2 percent, respectively. The results came a day after Macy’s said its comp sales for the holiday period fell 0.6 percent.
The results underscore the continuing challenges facing department stores. They’ve been beset by sluggish sales in most women’s fashion categories, and by consumers shifting some spending to e-commerce sites, in particular Amazon, and perceiving better values at off-pricers. Department stores are criticized for not innovating fast enough to keep up with the competition and changing times.
The department store sector “continues to underperform as alternative channels continue to resonate more favorably with consumers and gain share,” said Christina Boni, vice president and senior credit officer at Moody’s Investors Service. “Holiday performance suggests department stores will need to change more rapidly in 2020 to maintain their market position.”
“The key issue is that department store market share is down from 9.5 percent in the mid-Eighties, to 5 percent in 2005 and is now only 1.2 percent. And it is still overcapacitied,” said Craig Johnson, president of Customer Growth Partners.
While
On Thursday, J.C. Penney Co. Inc. and Kohl’s Corp. reported that their holiday comparable sales declined, 7.5 percent and 0.2 percent, respectively. The results came a day after Macy’s said its comp sales for the holiday period fell 0.6 percent.
The results underscore the continuing challenges facing department stores. They’ve been beset by sluggish sales in most women’s fashion categories, and by consumers shifting some spending to e-commerce sites, in particular Amazon, and perceiving better values at off-pricers. Department stores are criticized for not innovating fast enough to keep up with the competition and changing times.
The department store sector “continues to underperform as alternative channels continue to resonate more favorably with consumers and gain share,” said Christina Boni, vice president and senior credit officer at Moody’s Investors Service. “Holiday performance suggests department stores will need to change more rapidly in 2020 to maintain their market position.”
“The key issue is that department store market share is down from 9.5 percent in the mid-Eighties, to 5 percent in 2005 and is now only 1.2 percent. And it is still overcapacitied,” said Craig Johnson, president of Customer Growth Partners.
While
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