Good Lifestyle

Department stores were Mecca for buyers for a large part of the 20th century, but their peak is now firmly in the mirror. The disappearance of department stores has been underway for more than a decade now, and it has only been exacerbated by the cocovio pandemic. AccordingThe Washington Post,,about 40% Of all department stores in the United States have closed since 2016, with certain companies like Barney and Lord & Taylor who are entirely bankruptcy. But even the big chains that have managed to survive are faced with reverse. Now, big names like Kohl's, Macy's and Nordstrom are all trying to stay afloat in the face of new challenges. Read the rest to discover what these department stores are getting rid of now.

Read this then:7 Kohl secrets does not want you to know.

Inflation in the United States has been on a worrying trajectory this year. The NationsAnnual inflation rate reached 9.1% in June, which is the highest in 40 years, according to the American Bureau of Labor Statistics (BLS). And even with inflation falling at 8.5% in July, the impact is still felt, in particular with regard to the way consumers spend their money. According to market research firm The NPD Group, more than 8 out of 10 buyers areplan to rethink Or reduce their product expenditure over the next three to six months in the midst of inflationary pressures, CNN reported.

"There is a standoff between the consumer's desire to buy what they want, and the need to make concessions according to higher prices reaching their wallets", "Marshal Cohen, said at NPD the chief advisor to the retail industry, noting that buyers have turned away from the purchase of many non-seventies. Consequently, Kohl's, Macy's and Nordstrom have all reported lower consumption expenses recently - which creates problems for department stores.

Kohl's, Macy's and Nordstrom have all reduced their annual forecasts for 2022. Kohl said they were now expectingAnnual net sales To decrease by 5 to 6% compared to last year, Macydropped his perspectives For net sales of $ 24.7 billion at 24.5 billion dollars, and Nordstrom lowered itsIncome growth prospects from 1%.

The three department stores cited the drop in consumption spending as the main catalyst to reduce annual expectations. "The consumer is not as healthy aswere in the previous quarters, "Cfo de macyAdrian Mitchell An analysts told a conference call, according to CNBC. "We have noticed a drop in retail traffic in areas of weakening clothing sales during the quarter, because the consumer faces higher costs on essential products, especially the grocery store."

RELATED:For more up-to-date information, register for our daily newsletter.

As Macy explained to Bloomberg, there is another reason why these department stores revisetheir annual perspectives: "The level of inventory within the industry." Kohl said her inventory was48% higher What it was last year, when Macy's said that its inventory increased by 7% and Nordstrom said its inventory increased by 10% in the past year, NBC News reported.

AccordingThe New York Times, consumers reducing their expenses due to high inflationleft the retailers Stuck with more inventory than they need. A higher rate of return made last year and delays in the supply chain also added fuel to fire. "It's unprecedented,"Chuck Johnston, said a Director of Strategy at Gotrg, in the newspaper. "I have never seen the pressure in terms of excess inventory as I see at the moment."

Despite the already reduced forecasts, a surplus of inventory could further affect the annual income of department stores. To avoid this result, Kohl's, Macy's and Nordstrom will have to work to get rid of their excess inventory - which can be useful to you at the end. Kohl CEOMichelle Gass According to NBC News, said that the company's plan to become more "aggressive" on cleaning excess stocks will include increased promotions for buyers. "We recognize that many others take similar measures, which will probably constitute a more promotional short -term environment," said Gass.AE0FCC31AE342FD3A1346EBB1F342FCB

Macy isConcentrate specifically on updating Categories "linked to the pandemic", such as sportswear, night clothes and home products, as well as the drop in prices on goods and private seasonal products,The New York Times reported. "We answer to make sure that our customers get the fair value, and we liquidate the inventory that must be released on a certain date," said Macy CEO Jeff Gennette said to the newspaper.

During a recent call for results, the CEO of Nordstrom Erik Nordstrom said that will also get "Aggressive" to get rid of the East inventory, Marketwatch reported. According to Nordstrom, the brands planned with affect both its main activities and Nordstrom Rack, because the company has "authorization in the two banners that we must clean".