Beaten-down brick-and-mortar retailer Macy’s, Inc. (M) just announced that it will partner with DoorDash to offer free curbside pick-up and same day delivery. The news looks pathetic at first glance, coming more than six months after pandemic shutdowns have exposed the industry’s perennially inadequate response to the e-commerce juggernaut. However, a more balanced view suggests that the retailer is finally taking its survival seriously after a two-year 85% haircut.
- Department store stocks are testing range support and could bounce in coming sessions.
- The long-term outlook for the group remains bearish, with high odds for declines to March levels.
- Brick-and-mortar retailers are paying a heavy price for a chronic lack of innovation.
The four surviving mall anchors continue to struggle as we grind through the fourth quarter, but green shoots are appearing, with an improving U.S. economy and stubbornly loyal customer base that’s paying to keep the lights on.