The mall is closed... Your go-to childhood "run errands with mom" shopping options all released earnings Tuesday. And the combo of JCPenney and Kohl's dragged down the rest of their department store siblings:
- JCPenney (-7%): The stock dropped to $1 as sales fell 5.5% and its quarterly loss doubled. Plus, it's got a problem with "shrinkage" (aka shoplifting).
- Kohl's (-12%): Sales dropped 3.4%.
- Nordstrom (-9%): Bad timing. It reports earnings later this week, so it fell along with the rest of the crew because investors are dreading it.
Which aisle for "turnaround plans?"... None. JCPenney doesn't have one. And it says its turnaround strategy will arrive "in the coming months." Meanwhile, Kohl's is making creative moves:
- Embrace the space: It's subleasing its unused space for gyms and grocery stores.
- Embrace the Amazon: It's becoming Amazon's doormat partner, taking Amazon return items and installing Amazon lockers in 200 stores.
One OG retailer got the retail-pocalypse right... Walmart. Earth's biggest retail chain invested big in ecommerce, acquiring Amazon competitor Jet.com and online-savvy Bonobos. Then it kicked things up last week with Prime-killing 1-day delivery just before we learned sales rose 3.4% last quarter. JCPenney simply never made those investments.
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