Can Messi'S Department Store The Position Of Us Department Stores?

According to the world clothing and shoe net, in 1858, Rowland Hussey Macy of Nantucket Island opened a store under its name, at the intersection of 14 street and Sixth Avenue in Manhattan, New York, which is now the "Messi department store".

Until Mr. Messi died more than ten years later,

Bought by Nathan Straus and Isidor Straus two brothers.

Since then, when Messi opened its Seventh Avenue in the United States, it was once advertised as "the largest store in the world".

Today, Messi's department store, once advertised as the world's largest store, has fallen into a predicament of declining sales performance as well as other retail businesses in the US.

After taking a series of measures such as laying off stores and laying off staff, Messi's Department of Commerce swept away the old style of kings and became a member of the US retailing industry.

But can this temporary hemostasis help Messi department store the position of us department stores?

Deep in the mire of declining sales, it is hard to stop the layoffs.

Messi's department store is a relatively high-end department store in the United States. Although the scale of Messi's department store is not very large, it has a high reputation both in the United States and the world.

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And family decorations.

However, in recent years, the development of Messi's department store has begun to show a downward trend, and the decline speed of this century old shop is somewhat unexpected.

At the beginning of this year, Messi Department officially announced its restructuring plan on its official website: as sales have been difficult to pick up, the company will continue to close its business, closing 68 stores in the year, and the number of layoffs is expected to reach tens of millions.

It was thought that the situation would be better after the layoffs, but the next report was like a slap on the face of Messi's department store.

In the first quarter of 2017, Messi's department store lost 39% of its profits due to poor sales. Its sales in the same store had declined for 9 consecutive quarters.

On the day of the first quarter's earnings report, Messi's department store fell 18%, reaching its biggest decline in 9 years.

As a giant of department stores in the United States, the decline of Messi's Department has affected the overall level of American retail industry.

Although Messi's department store is still in a profitable State, its sales have been in a state of continuous decline, and its valuation is relatively low.

From the first quarter earnings report, Messi department store restructuring plan does not seem to play a role.

In the second quarter, the effect of its restructuring plan was minimal.

Sales in the second quarter totalled $5 billion 550 million, down compared with the same period last year, but still exceeded the average estimate of $5 billion 520 million of analysts surveyed by financial information provider FactSet.

According to the self shop, Messi store's sales in the second quarter decreased by 2.8% compared with the same period last year. According to the self authorized store authorized stores, the same store sales of department in the second quarter dropped 2.5% compared to the same period last year.

Although Messi's sales exceeded analysts' expectations, its share price and sales continued to decline.

In fact, the same store sales retrogression in the second quarter was the tenth quarter of Messi's department store's decline, and net sales decreased by 5.4% annually.

Fortunately, the sales volume of Messi's department store has not yet seen a bad situation that the industry is worried about.

It can be seen that the reorganization plan has little effect on Messi's department store, which is deeply in the downward spiral of sales. Closing stores and layoffs still can not change the situation of sales decline of Messi department store.

Moreover, in the United States, there are more than Messi department stores, and hundreds of shops have been closed down.

Today, the US retail industry is so sluggish, Messi department stores for 10 consecutive quarters of sales decline phenomenon, has not yet ended.

Hope that the electricity supplier will be fruitless, and Messi department store has to find another way out?

Mark Schaefer, a famous American real estate agent, said that the pformation of people's shopping methods pushed the traditional retail industry to a blind alley. The change of people's consumption mode gave the traditional retail industry a fatal blow.

So, is the reason that Messi's department store is going down the downhill is really a change in consumer shopping and consumption patterns?

In most people's view, the reason for the decline of many department stores represented by Messi department store is the impact of the electricity supplier.

In fact, Messi has its own online shopping platform, but it is still unable to save its predicament.

As early as 1996, Messi stores began to contact online shopping platforms and gradually improved consumer shopping channels.

According to Similar Web data analysis, from March 2016 to September, the total number of visitors to Messi's official website exceeded 360 million, with a monthly average of 60 million passengers, of whom 58.8% came from mobile terminals.

Perhaps the phenomenon of a large increase in official website visits has made Messi department store hope for the electricity supplier under the weight line.

Messi's department stores extended its sales channels to the Chinese market through e-commerce. Last year, it upgraded strategic cooperation with Alibaba, and is expected to build an independent sales line on China's online platform this year.

Nevertheless, Messi's department store failed to change the current dilemma of sales decline. Its sales in the last two months of last year fell by 2.1%, including online and offline platforms, and the efficiency of the US online platform was lower and higher than that of offline stores.

Therefore, the hope of Messi department store's e-business is not realistic.

It is undeniable that the development of e-commerce is becoming more and more important under the promotion of new retail, but the number of shops under the line has not been greatly reduced.

More realistically, the impact of e-commerce on the US retail industry may be an illusion. As a representative of the US retail industry, Messi stores may still lack innovation.

With regard to innovation, Messi, a department store with a history of nearly 200 years, may have to think highly of it.

At present, most fashion brands are on the road of enterprise reform, which are more successful than Zara, UNIQLO, LVMH and other groups. The main reason for their successful pformation is to make the corporate image younger.

The main consumer groups are getting younger and younger, and the physical shops should also change with the current consumption preferences.

Therefore, the main reason for hinder the development of Messi's department store is not from the impact of the electricity supplier, and it seems not easy to develop the electricity supplier in the United States.

As a representative of the traditional retailing industry in the United States, Messi department, according to the current situation, is developing to the electricity supplier, and it can not save its sales performance.

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Can Messi's department store recreate its past glory?

At present, the US retailing industry is already a sad one, and Messi's department store is also trying its best to save sales in the declining position. It has done everything in its power, laying off stores, hoping for electricity providers, reducing costs, and selling over $800 million of property assets, but it has done nothing.

In the future, it is not easy for Messi to return to the world's largest store.

Although Messi's second quarter earnings and revenues both exceeded expectations, its gross margin fell 60 basis points to 40.3% last year.

After continuous adjustment of the store portfolio and strengthened management of inventory, by the end of July, its inventory decreased by 6.4% to 4 billion 980 million dollars compared with the same period last year.

According to Citigroup Inc. Citigroup analyst Paul Lejuez, such a level is already very weak, and investors' hopes for the development of the retail industry are shattered and the group's share price is lower.

Not only that, Messi's department stores did not expect a rebound in the same store sales in the third quarter, but predicted that the next quarter will drop by 2.5% or more.

However, sales volume has improved, especially online orders, under the "sales promotion" of Messi's department store.

Whether it is to lay off stores or reduce costs, Messi department's strategic adjustment of enterprises has not yet been effective.

In the new era of retail competition full of competition, if Messi's department store can not stand out from the predicament faced by the traditional American retail industry and continue to decline, it will mean that the traditional mode that has lasted for hundreds of years will come to an end.

In a word, Messi department store, a department store in the big cities of the United States, has witnessed the rise and fall of the retail industry in the past 200 years. With the advent of new retail, the symptoms of old age are becoming increasingly prominent.

Today, Messi department stores in the two aspects of electricity suppliers and physical shops are mediocre, the United States Department Store giants are hard to protect.

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