For Macy’s And Penney, It Must Be Reinvention, Not Just Reorganization

For Macy’s And Penney, It Must Be Reinvention, Not Just Reorganization

Two retailers, each with a bag-full of problems it must sort out...and quickly. Photographer: ... [+] Patrick T. Fallon/Bloomberg



BLOOMBERG NEWS



It is probably no coincidence that the nation's two largest department store chains find themselves in the same place at the same time. Each may have traveled to this point via a different path and each may be in a somewhat different position to deal with its problems but there's no mistaking the fact that for Macy's Inc. and JC Penney the retail clock is ticking.



Even though Penney finds itself in bankruptcy court sunk by excessive debt from previous very bad management decisions while Macy's still has a working financial balance sheet that gives it some economic breathing space, both chains face the same dire situation:,



        “¢ Each has too many stores - too many bad stores in bad locations - and each has said it will close about 150 units in what could only amount to the first wave of retrenchment.



        “¢ Each relies on a physical store makeup that is heavily dependent on shopping centers, perhaps the most vulnerable real estate in retailing. Many of these malls are in sub-par B, C or even