For Macy's, going downmarket looks like the way ahead

For the past six years, Macy's has focused more on cutting costs and streamlining its operations rather than expanding as a way to fuel earnings. Macy's said this week it would spend $1.2 billion to expand internationally and set up off-price stores, which sell items such as seconds, returned goods and off-season merchandise at prices that squeezed middle-class customers have found increasingly attractive since the 2008 recession. Since so many peoples' salaries are off-price they also need to shop that way," said Robert Brusca, chief economist at consulting firm Fact and Opinion Economics. TJX's sales have increased 6 percent in each of the past two years, while Macy's sales have grown an average 0.75 percent.

via Business News http://ift.tt/1AOwWxA