Macy’s Inc (NYSE:M) and JC Penny are currently facing the same problems. To get to the point of thriving once again, they must consider reinvention instead of just reorganization. Experts think that the two businesses need to address the main issues.
Macy’s and Penny are known for having quite a significant number of stores. However, there are too many of these stores situated in bad locations, which is undoubtedly a matter of great concern. Each of the companies is considering closing down about 150 units, a move expected to result in some significant job losses.
The idea to close down the stores will only help reduce the irrelevant stores but won’t help address the main issue.
It was a great move for Macy to reopen. However, the criticism continues with some business observers making claims that the businesses are conducting one-day sales. Any consideration to the point that the COVID-19 pandemic resulted in some adverse effects over the past four months.
Penney has particularly focused on sale of its gimmicky cocktail of coupons. Financial experts think that it would be a great move for Macy’s to re-look its strengths and maximize upon them. Macy’s is believed to have given the business a major boost in the course of the pandemic.
The essence adopting a digital-first strategy
There is a proposal for the businesses to embrace a digital-first strategy in their business operations. Taking up the approach would reduce the need for physical locations. All signs point to Macy’s walking down that path. The most important thing for the company is to hasten the speed of doing things. It needs to adapt so that it can witness the desirable change it seeks.
A lot of changes are needed, but again some good things are happening. For instance, Macy’s San Francisco has sprung back into the business.
The business was shut down when the COVID-19 was quite heavy for the world. The closure of the business reportedly captured attention of many people from around the globe. It was a matter that also caused a lot of people to lose their jobs.