Macy's Needs to Capitalize on Rivals' Woes
Macy's (NYSE: M) might not look like a company ready to go on the offensive. After all, the department store giant reported a $630 million adjusted net loss for the first quarter.
However, as devastating as the COVID-19 pandemic has been for Macy's profitability and balance sheet, many of its main competitors are even worse off. This has created a golden opportunity for Macy's to turn its short-term pain into long-term market share gains. But to do so, the company needs to stay aggressive to identify and win over troubled department store chains' customers.
Back in May, Macy's CEO Jeff Gennette estimated that there could be $10 billion of annual sales up for grabs going forward, due to weaker retailers either shrinking or going out of business altogether. Macy's already has experience in winning over defunct chains' customers, having picked up some market share from Bon-Ton Stores, which liquidated in 2018.
Source Fool.com
