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#BRICKANDMORTAR #DIGITAL #STORES : Macy’s Acquisition Approach by Saks Owner
Industry: Retail
Location: United States
Related to: Struggling brick-and-mortar stores
Reviewer: Lalla Kenza Medrek – Parsons School of Design
Company: Macy’s
Website: macys.com
About:
Macy’s, one of the United States’ leading department stores was reported to have been approached by Canada’s Hudson’s Bay Co. for an acquisition, on February 3rd, 2017 by the Wall Street Journal.
Hudson’s Bay Co. not only owns its private label department stores, but also Lord & Taylor and Saks Fifth Avenue. The Canadian department store group, would be adding a struggling and indebted brand to its portfolio, making this deal risky from the start, but, nevertheless, would create the world’s largest retail group.
According to USA Today, “by scooping up Macy’s, the Toronto-based retailer would leapfrog to a combined 6.2% share of the global department store market, says Neil Sanders, managing director of retail analysis firm, Global Data”.
Macy’s operating 730 stores to-date (including Bloomingdale’s), along with Hudson’s Bay’s 470 locations, Sander’s predicts the latter would have to layoff more of Macy’s stores, as an inevitable solution for covering the debt.
Having announced in January 2017 the closing of 68 stores and loss of 10,100 jobs, according to USA Today, losing market share to retail giants such as Amazon and fast-fashion stores that offer luxury garments look-a-likes such as Zara, the iconic American brand, unfortunately, seems to be heading towards an acquisition, whether it is by Hudson’s Bay or another potential buyer.
Links to articles
Wall Street Journal: https://www.wsj.com/articles/saks-owner-hudsons-bay-makes-takeover-approach-to-macys-1486134787