Start with what's been earning yr over yr. .com sector. Dump piles of capital into more buildings. Re-align the company and equip it properly to cater the .com industry.
Keep stores open for that small 20% of people who are still traditionalists. And drive that 36% yr over yr .com to new heights.
It's the only hope you have to stay alive anymore.
The end.
7 replies (most recent on top)
Amazon has a “large competitive advantage with its 20 years of experience in building its delivery infrastructure — 175 fulfillment centers (FCs) globally, 40 sortation centers (SC), 100 delivery stations, and 20 air gateways — as it is now a Third Party Logistics provider itself, making it increasingly difficult for just about any retailer to replicate.”
Post below.....1 building per year??? That is not enough to prove to shareholders we are moving in the right direction. the only direction for this company is to sell out to an investment group and bring new Management in, PERIOD!!!!
Poster below. I was a part of Capital acquisition and funding for macys at a mid level for years.
I'm well aware of the 5yr and 10yr forecast.
Even if they planned 1 building per year for the next 20 years it would be enough to A. Stimulate shareholders and let the street know they are moving in the right direction.
- Actually start moving the company to a mostly online process also stimulating sales growth yr over yr.
- The ROI on a 220m building is literally a 3yr ROI.
With the sales to support and growth of a new sector what bank wouldnt fund a 3yr ROI at %.
Comment on post below......... they will not do this. They do not have the capital dollars it takes to make this shake up move. They would need a private investor to take over. Then they will sell profitable properties and reinvent the company.
But you have to look at why online orders are slower than other stores.
Macys has only 4 mega centers. Amazon has 390.
If macys opened up a mega center in every state for online order fulfillment instead of trying to use stores to do it. I mean lets face it. D2Cs are expert at what they do. No offense to store fulfillment but they do not ship day in and day out with high frequency and volume. Now out a building in every state period. Only 50 buildings vs Amazon's 360. And macys will be just fine.
Orders would be on time and correct when delivered. Because it would force the company to re invest into Systems teams, apps also.
Basically reinventing itself and it would be profitable 100%.
They can’t deliver on anything!
Ever ordered anything online through Macy's? Try this, order a product from Macy's, order the same thing through Amazon, and another .com company. Macy's orders take twice as long to hit your front porch. That's the problem, they can not deliver goods with speed and accuracy.