Macy\'s Herald Square store has been hurt by a decline in tourism. Fewer interna

Question

Macy's Herald Square store has been hurt by a decline in tourism. Fewer international travelers are visiting the U.S. because of the strong dollar. Photo: Michael Nagle/Bloomberg News

By Suzanne Kapner

Nov. 11, 2015

For more than a decade, Macy’s Inc. boss Terry Lundgren has defended the traditional department store—gobbling up other retailers, testing out new selling formats and trying to clamp down on discounts, to name a few tactics.

Now, after years of strong growth, Macy’s faces a crisis. On Wednesday, the company said sales declined 5.2%, worse than analysts had feared. And the retailer, which is heading into the crucial holiday season with piles of unsold goods, also warned that it expects comparable sales this fiscal year to decline, compared with previous guidance for sales to be unchanged.

By Wednesday afternoon, shares of Macy’s fell 14% on the news, to $40.44; the stock has dropped nearly 40% this year.

“The retail industry is going through a tough period,” said an unflustered Mr. Lundgren on a conference call with analysts. Later, he added, “I’m certain we will come up with some creative ideas that will surprise people.”

He noted that while consumer spending seems healthy, many shoppers are buying goods and services that department stores don’t carry, such as cars, electronic gadgets and home improvement items.

What is the primary issue that you identify affecting Macys and how may it be resolved?

Explanation / Answer

This is a basically the problem of internal business environment and also the external issue of a country. The monetary policy which control the economic parameters like dollar value and also he economic situation of a country. Due to internal and external factor Macys was face the problem of sales decline and their has a bad effect on its share price. The price of a share depends on the performance of a company and its strenght and also the nature of the business they are doing. It also affected due to the external causes like govt policy or any other country affected due to the same vertical industry.

So to resolve this situation the retailer Macys can make some proper policy in the field of operation like:

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