The retail giant Macy’s now has a lower expectation of its’ yearly earnings due to their second quarter results. Macy’s reported that their second quarter earnings fell short by nearly .8%, or 6 billion dollars. In addition to this their stock fell .3% and is now valued at less than $48. The retailer was expecting a 200 to 300% increase in sales, especially with back to school shopping happening. This is a big deal for companies as large as Macy’s and their other company’s such as Bloomingdale’s. They are not the only company suffering from the cutbacks consumers are making to their shopping budgets. Other companies such as Wal-mart and Cisco are also seeing this trend.
Macy’s, like many other company’s such as Wal-mart, are fighting against the economy which is up and down almost constantly. Consumers are being more careful with their money now more than ever. The recent recession changed the way many people shop. Many consumers are focusing on spending money on long term investments such as homes, vehicles, and home improvements instead of shopping. Much of the shopping done at Macy’s and stores like it are mostly for clothing and home items like curtains. Unfortunately, retail giant Wal-mart can offer some of the same things at much lower prices for consumers. The quality of the items may not be matched to Macy’s but people are looking more at affordability and functionality. However, even Wal-mart has seen a significant decrease in their second quarter sales and stock.
On the upside, Macy’s reported that Bloomingdale’s, one of their licensed department stores actually had an increase in sales. This is good news for the company. The numbers for the second quarter are only for Macy’s stores, and do not include any of their licensed department stores. If those were included, the overall numbers are up from last year. In the future they plan to focus on advertising, and the quality of their goods. The use of advertising is important for any company that is experiencing falling numbers. This is especially true of the use of social media marketing campaigns that have low cost and can be spread easily through likes and shares on websites such as Facebook, Tumblr, Google+, and WordPress.