Sina American Stock Exchange News Beijing time 27th newsMacy's Department Store(Macy's) used to be an important retail giant in the United States, but its profits are falling and its share price has shrunk sharply due to the rise of online shopping, reflecting the daunting challenges facing the US brick-and-mortar retail industry.
Macy's shares have fallen 45.60% so far this year, making it the worst-performing retail stock in the S & P 500, according to Forbes magazine. The company's market capitalization has fallen from a peak of $24 billion in 2015 to $5 billion. The market capitalization is now even lower than the company's real estate assets, which are worth about $19 billion.
Clothing retailer Gap is the second-worst performer in the s & p 500, with its shares plunging 31.44% from the start of the year to 23. Gap's chief executive, Art Peck, left suddenly on November 7, leaving the company facing a management reshuffle that sent its share price down 7.64 per cent the next day.
In addition, L Brands, the parent company of Victoria's Secret, also had a dismal year, with its shares tumbling 28.83 per cent. According to the Forbes report, Victoria's Secret suffered huge losses due to fierce competition from emerging lingerie ecommerce companies such as ThirdLove and True&Co, and even suspended its high-profile annual fashion show this year.
Overall, more than half of the retail stocks in the S & P 500 have underperformed the broader market this year (the S & P 500 is expected to rise 28% this year). This also includes e-commerce giants.AmazonIn part because its heavy investment in logistics has eroded its profits. Still, the stock is up 19% this year.
Even so, there are still bright spots in retail stocks this year, such as discount retail giantsTarget Corp(Target) share prices have soared 94.19% this year, the consumer electronics retailerBest Buy(Best Buy) also rose 65.48%. In addition, discount department store operators Ross andTJXIt also showed a bright performance, with the share price rising 37.26% and 34.2% respectively.