Current Event #3: In denial

A few days ago, Zacks Investment Research published a short article about the top 5 companies in the department store industry based on relative performance. The analysis was based on recent trading activity on stocks that have the potential to outperform. Guess who wasn't on the list? 


The list in order was as follows:
1. Macy's
2. Kohl's 
3. Saks
4. Nordstrom
5. Dillard's 


Again, Macy's is kicking Sears' butt! It's number one on the list with a mere loss of 0.57% compared to Sears' lost of 2.6% in the last quarter. I asked the corporate trainee, who expects to be an assistant store manager in about 6 months, what she thought about the future of Sears in comparison with other department store retailers. She said, "I'm not worried about it. Sears is still a Fortune 500 company. So we're doing something right"


Despite the Fortune 500 company designation, it's obvious companies are doing something BETTER than us. For example, Walmart who ranks number one on the Fortune 500 list and Target at number 33! Although Macy's is a little lower on the list at 107, consumers are preferring them over us. I'm starting to think everyone is in denial! Everywhere I turn, someone is telling me that Sears is near bankruptcy...no one shops there...Sears is old news.


All in all, I think everyone is in denial. No one that works at the store level is worried and maybe they don't have reason to be. However, if all these companies continue to flourish without us doing anything, we will have something to be worried about!


Bibliography:


TOP 5 COMPANIES IN THE DEPARTMENT STORES INDUSTRY WITH THE BEST RELATIVE PERFORMANCE (June 23, 2011). Retrieved June 25, 2011. From http://www.zacks.com/research/get_news.php?id=174l7435.   

Bon-Ton and Sears Post 1st Quarter Losses (May 20, 2011). Retrieved June 25, 2011. From 

http://departmentstoreretailing.blogspot.com/2011/05/bon-ton-and-sears-post-1st-quarter.html.