Yet another tough go for traditional retail.
A number of earnings reports over the past 24 hours have highlighted the challenges faced by brick and mortar retailers trying to adapt in an age where growth is found in the e-commerce segment, and costs mount for stores outside metropolitan areas.
Mall-based department stores are seeing stocks tumble, for example Macy’s suffered a 17 per cent drop — its lowest level since August 2011.
Even Nordstrom’s saw its stock fall eight per cent yesterday, and another nine per cent today, as the key metric of same store sales for their established locations fell 0.8 of a per cent.
For Canada’s Hudson’s Bay, parent company of Saks Fifth Avenue and Lord and Taylor, it was the same story of same store sales down 2.4 per cent and traffic struggling in the three month period through to April.
Its stock is down 5.5 per cent this morning as retail weighs on the markets.