Department Stores Are in Trouble as Discount Retailers Take Their Customers
Department stores are facing a resourceful, savvy foe: discount retailers such as Target and TJMaxx. While department store chains change things up at the store level, the changes aren’t sweeping enough to reverse the trend. At the same time, the pressure from discount retailers is forcing price reductions and sales, eating into profits and making even less money available for the necessary changes.
Macy’s struggled during its latest quarter, adding to a string of poor results at department stores. This comes as lower-priced retailers grow sales and consumer spending in the United States remains strong. Americans are still shopping, but they are hunting for bargains elsewhere.