Macy’s Sales Keep Dropping, and Investors Are Unforgiving

Macy’s Sales Keep Dropping, and Investors Are Unforgiving
Macy’s earnings results — which by some measures were better than expected — sent the company’s
share price into a steep dive, falling more than 10 percent by the close of trading.
Even as the sales slide appeared to moderate, the company’s efforts to bolster its internet business
and establish a discount brand called Backstage are still taking hold.
The department store giant, which has become a bellwether for all
that ails traditional retailers, reported on Thursday that its sales fell again in the most recent quarter.
Mall traffic improved nationally in July, said Craig Johnson, president of Customer Growth Partners, a retail research and consulting firm.
“There is still too many square feet chasing too few customers’ feet,’’ said Mr. Johnson.
Department stores like Macy’s are losing sales to Amazon and other e-commerce retailers, as fewer Americans shop in malls and physical stores.