Macy's Inc Financial Crisis Case Study

760 Words Feb 5th, 2018 3 Pages
To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).
In the midst of America's integration within the overall global economy, the consumer now has a very important role. Consumer spending is the foundation of the American economy. With consumer spending, our nation will falter due to lack of employment, less tax revenue, and lowered quality of life. As such, consumer spending accounts for nearly 70% of America's GDP. Retail spending is a major portion of this spending. Retailers must prosper for America to prosper. One such company that is leading the retail industry is that of Macys. Below is a…
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