JCPenney, Dressbarn among retailers struggling to keep up with online shopping

Updated : Oct 12, 2019 in Articles

JCPenney, Dressbarn among retailers struggling to keep up with online shopping


PHIL. IF YOU’RE NOT CAREFUL, AS STUART VARNEY SAYS WE’LL HAVE YOU BACK. [LAUGHTER].>>>SAME-STORE SALES MISSED AT HOME DEPOT. KOHL’S CUTTING THEIR OUT LOOK COUPLED WITH EXAMPLES — LET ES ADMIT A LOT OF THE SHARES ARE DOWN 95% FROM ALL-TIME HIGHS. I WILL BRING IN JACKIE DEANGELIS TO BREAK YOU WILL THIS DOWN. JACKIE. REPORTER: IT IS GIVING US A SENSE OF CONSUMER SENTIMENT, HOW PEOPLE ARE SPENDING AND HOW THEY FEEL ABOUT THE ECONOMY. THE EARNINGS THAT CAME OUT TODAY WERE NOT STELLAR. START WITH JCPENNEY I THINK THIS IS AN IMPORTANT ONE. MISSING ON THE TOP AND BOTTOM LINE. A LARGER LOSS THAN EXPECTED. THOSE SAME-STORE SALES WERE DOWN MORE THAN 5%. THE CEO OF JCPENNEY ACTUALLY SAID THAT THE TARIFFS IMPOSED BY PRESIDENT TRUMP HAVEN’T HAD A IMPACT ON THE COMPANY JUST YESTERDAY BUT THEY ARE CONCERNED ABOUT THAT SECOND POTENTIAL ROUND OF TARIFFS ON THE OTHER REMAINING $300 BILLION OF GOODS. HE SAID IT WOULD HAVE A MORE MEANINGFUL IMPACT. CERTAINLY SOMETHING TO WATCH FOR. ON THE KOHL’S SIDE, ANOTHER DEPARTMENT STORE MISSING ITS EARNINGS, LOWERING IT OUTLOOK FOR THE FULL YEAR AND THE CEO SAYING THE YEAR STARTED OFF SLOWER THAN WE’D LIKE. NORDSTROM’S, MACY’S, THEY’RE DOWN ON THE SESSION IN SYMPATHY. THE DEPARTMENT STORES HAVE A CHALLENGE. THEY’RE TRYING TO MOVE LOCATIONS. THEY’RE TRYING TO SPIF OF DISPLAYS TO GET CONSUMERS IN THE DOOR. THAT IS DIFFICULT TO DO WHEN IT IS EASY TO SHOP ONLINE WITH COMPETITORS LIKE AMAZON OR GO STRAIGHT TO THE MANUFACTURER, BUY OFF THE WEBSITE. SOMETIMES THE PRICE SOMETHING MORE COMPETITIVE. CERTAINLY DON’T HAVE TO GO TO THE STORE, IT IS EASIER ARE MORE CONVENIENT FOR PEOPLE. HOME DEPOT IS ANOTHER ONE THAT INVESTORS ARE FOCUSED ON. NUMBERS WERE BETTER, THEY BEAT THE ESTIMATES BUT THEY WERE DOWN BECAUSE SAME-STORE SALES GREW AT THE SLOWEST LEVEL THE COMPANY HAS SEEN IN THREE YEARS. FINALLY I WILL END HERE WITH STORE CLOSURES, LOOKING AT DRESSBARN. THE PARENT COMPANY THERE SAYING IT WILL CLOSE 650 DRESSBARN STORES. I ACTUALLY LOOKED UP THE ENTIRE AMOUNT OF STORES THAT WERE CLOSED FOR LAST YEAR. ACCORDING TO CORE SIGHT RESEARCH, 5864. CHARLES, AT THIS POINT IN THE YEAR, WE’RE ONLY IN MAY, ALREADY 7,000 ANNOUNCED CLOSURES. YOU CAN SEE THAT BRICK AND MORE TAR STORES AND RETAILERS ARE STILL STRUGGLING HERE. CHARLES: YOU’RE ABSOLUTELY RIGHT. JACKIE. I WOULD LIKE YOU TO STAY WITH US. I WANT TO BRING BACKFILL AND DAVID. I TOLD YOU PHIL, IF YOU’RE NOT CAREFUL WE WILL NOT LET YOU GO. LET’S TALK ABOUT THIS BECAUSE INVESTORS LOOK AT THIS AND THEY WONDER, DOES THE BRICK-AND-MORTAR STORY HOW MUCH IS REFLECTION OF THE OVERALL STRENGTH OF THE CONSUMER OUT THERE?>>I THINK THE CONSUMER IS IN PRETTY GOOD SHAPE. YOU LOOK AT, WE GOT A RETAIL SALES NUMBER ON APRIL. DISAPPOINTING ON THE SURFACE BUT THE MARCH NUMBER WAS REVISED HIRE. BECAUSE OF CHANGING CALENDAR, EASTER, PASS OVER EVERY YEAR, THE WHAT I REFER TO AS THE MAPRIL EFFECT. RETAIL SALES WERE UP 3% YEAR-OVER-YEAR THOSE TWO MONTHS COMBINED. WHAT IT DOES, TELLS US THE CONSUMER HAS SHRUGGED OFF THE DIFFICULT WINTER, THE GOVERNMENT SHUTDOWN, THE NEGATIVE WEALTH EFFECT IN THE FOURTH QUARTER. WE’VE ERADICATED THE STENCH FROM THE DECEMBER AND FEBRUARY NUMBERS THAT WERE POOR. I THINK THE CONSUMER IS IN DECENT SHAPE. CHARLES: I FEEL LIKE WALL STREET STARTS TO TAKE THINGS IN CONSIDERATION. RIGHT NOW HOME DEPOT IS UP FOUR BUCKS WHERE IT OPENED. THE LOW OF THE SESSION, 186. ALREADY UP A BUCK. THAT IS WHAT I’M LOOKING FOR. NOT HOW WALL STREET REACTS TO OTHER NAMES. JCPENNEY IS DOWN 98% FROM ITS ALL-TIME HIGH. PARENT COMPANY OF DRESSBARN IS DOWN 99% FROM ITS HIGH. THEY HAVE BEEN SLAUGHTERED. THE NAME LIKE HOME DEPOT IS GETTING THE BENEFIT OF THE DOUBT.>>THERE WILL BE SURVIVORS FOR SURE, BIG BOX DEMAND THERE IS NOT ENOUGH OUT THERE. THE STORES HAVE TO SHRINK. I WALKED INTO A MALL IN STANFORD, WILLIAMS-SONOMA WAS GONE. I WAS SHOCKED TO SEE THAT. THE AMAZON EFFECT IS REAL. I’M NOT AS ENCOURAGED RIGHT NOW BECAUSE AMAZON IS ONLY UP FRACTIONALLY ON THE DAY. THEIR LAST QUARTER WASN’T THAT GREAT. IT WASN’T HORRIBLE. GROWTH CLEARLY SLOWED. I WOULD HAVE A WORD OF CAUTION HERE. CHARLES: FOR THE CONSUMER OR FOR ALL RETAIL OR A LITTLE BIT OF BOTH IF.>>FACT THAT AMAZON SLOWED LAST QUARTER, THAT BOTHERS ME A LOT. CHARLES: JACKIE, I WAS LOOKING AT COMMENTS FROM HOME DEPOT VIS-A-VIS THE TARIFFS. THEY HAVE MANAGED. ANOTHER BILLION OF TARIFFS IS ONLY 1% OF THE SALES THEY’RE DOING THINGS ALREADY LIKE TRYING TO MOVE SUPPLY CHAINS. WE KNOW THAT THE INDUSTRY SENT THE WHITE HOUSE A LETTER YESTERDAY. AT LEAST THE FOOTWEAR MAKERS DID. THEY DON’T WANT ANY PARTS OF THIS BUT DO YOU SEE WHERE THEY MIGHT START TO MAKE LONG TERM CHANGES ANYWAY WITH RESPECT TO SUPPLY CHAIN?>>ABSOLUTELY. I MEAN THEY WILL BE FORCED TO. THE PRESIDENT’S BEEN HOLDING BACK AFTER HE RAISED THE TARIFFS AND CHINA RETALIATED. HE HAD THAT EXTRA PUNCH. HE IS SORT OF SAVING THAT IN HIS BACK POCKET BEFORE HE MOVES FORWARD. BUT IF THIS, THE TENSIONS CONTINUE, TO WORSEN HERE, THE DEAL REALLY CAN’T BE STRUCK SAY BY THE END OF JUNE, AND PRESIDENT DECIDES HE IS GOING AFTER THAT REMAINING $300 BILLION, YOU KNOW, COMPANIES LIKE NIKE, FOR EXAMPLE, THAT MANUFACTURE SO MUCH IN CHINA, THEY ARE GOING TO BE FORCED TO FIND OTHER

42 Comments

  • 7k store closures and I guarantee you they will keep talking about record low unemployment to keep those artificial numbers low

  • If people dont have jobs in manufacturing here to supply their stores, how are people expected to pay to make sure they keep business open…most of their own hourly employees cant even afford their goods…

  • Home Depot adapted. They have online, too. You cannot compete if you're not where the market is, huh? I know what aisle it's in before I get to the store!

  • I wonder how they will feel when there is no company willing to be in the United states if the Democrats have there way and tax everyone out of existence.

  • Also gasoline prices are killing businesses right now. Especially in high tax states like California.. Every business here are slow because of it..

  • This generation is lazy and its killing its own jobs… Remember school is not for everybody and there is nothing wrong with that aslong as you contribute to society … Now we have many many more illegal alien guests coming in for a better life y'all better start shopping in these stores so there be more jobs or we are fked

  • That's okay they only carry Chinese junk anyways it's about time so now maybe we'll have stores full of USA made Goods

  • THE PROBLEM IS NO ONE IN THE US WANTS TO WORK.
    THE LAZIEST FATTEST DUMBEST COUNTRY IN THE WORLD.
    A CESS POOL OF ALCOHOLICS AND DRUGGIES AND NO BACKBONE DEGENERATES WITH NO COMMON SENSE NO WORK ETHICS NO UNDERSTANDING NO DESIRE TO WORK.
    WOMEN CAN PUT YOU IN JAIL AFTER YEARS OR MONTHS WITH AN ACCUSATION.
    THE MEN ARE SO STUPID THEY CAN NOT ADVANCE.. ITS A PIT OF LAZY DUMBFUCKS..
    LET IT FALL!!!!I WOULDNT GIVE 2 CENTS FOR 90% OF THE PEOPLE UNDER 45. TOTAL
    LOSERS. WORTHLESS

  • And while all these business masterminds are jumping on Trump China's tariffs and Huawei, they're primarily shopping on Amazon and other online shopping retailers causing stuff like this to happen. Then those stores are causing some stocks to drop because they're tied to other companies that purchased stock in them, thus causing a chain reaction of stocks dropping…….but it's all Trump's fault because of China.

  • JCP will file bankruptcy within 12 months or be bought out by a larger competitor in my opinion.

  • Many employees don't know the art of how to close a deal, like I used to when I worked at Penney's. And I was one of the top 10% in the company for online sells, and I didn't worked in the online registry. I knew that once I leave, would in the end hurt sales at my location.

  • Stores close because people buy on line anyway you buy cheap from China and you get rubbish stuff poor quality and it costs to much to send back

  • So the real culculprit is exposed on-line shopping creates a potentially bigger problem for conventional stores as much or more than tariffs.

  • But trumps tearif pays off down the road it takes time for start up. Business to come. Onboard. To have an effect,

  • Penny's start building warehouse to launch manufacturing at home rather than importing low quality products from China and Asia

  • JC Penny's used to always be a nice place to shop in, the store's were so clean, when you stepped inside you could smell the new fabric, you would always find lady's at the perfume and makeup counter wearing their best clothes as a sales lady helped them try products. You could buy anything at Penny's and you knew it would be of good quality and was going to last … Those were better days when Ladies were Ladies … Maybe it's not Penny's but the fact society has gone down hill as a whole … There was a time when people had pride in everything they did …

  • Walmart sells cheaply made stuff from China. That's how the Waltons became billionaires. They don't care about kids working in sweatshops as long as they make big sales.

  • Okay, WTHeck, these two businesses, JC Penny lost their business when they turned in to a primarily Tween selection and have been struggling for years every since and Dress Barn charges way too much and don't want to bring down their insane prices to be competitive.

  • JC Penney was gone long before Trump ever came into the picture. JC Penney failed to keep up with online consumers.

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