5 Retailers On The Ropes
Amazon, of all companies, is bullish on brick-and-mortar—expanding into its third offline location. Here are some retailers that may not share Amazon's confidence (since the e-commerce giant has siphoned away their market share).
2015 Revenue: $25B
Revenue Change: -19.4%
Market Cap: $1.59B
Sears has continued a slow decline over the past year, posting a $1.1B loss. The department store is reportedly closing 50 locations this year, and its sister store, Kmart, closed 13 locations in March. The company monetized its real estate assets through a REIT spinoff during 2015, but still can't seem to turn a profit.
2015 Revenue: $27B
Revenue Change: -3.7%
Market Cap: $10.52B
While not operating in the red like Sears, Macy's still saw a nearly 30% drop in profits over the past year as it has been hit hard by both e-commerce and abnormally warm winter weather (disrupting its winter-clothing sales). The retailer announced 40 store closings at the beginning of the year, which in turn will mean 4,500 layoffs and an added risk for around $530M in CMBS loans.
2015 Revenue: $14B
Revenue Change: 6.9%
Market Cap: $6.66B
The upscale retailer has been battered by the rise of fast-fashion brands like H&M and its foreign counterparts Zara and Primark. Despite the success of its own discount brand, Nordstrom Rack, the company is cutting 400 jobs at its corporate HQ.
2015 Revenue: ~$3B
Revenue Change: 11%
Market Cap: N/A
Sports Authority is less on the ropes, and more down for the count. Despite an increase in revenue, the athletics retailer filed for bankruptcy early in the year, and now will liquidate all 460 of its stores—and even plans to sell its naming rights to the Denver Broncos' NFL stadium.
2015 Revenue: $1.84B
Revenue Change: -11.9%
Market Cap: $5.97M
Aeropostale announced 175 store closings in 2014, and its fortunes haven't looked up since, falling prey to the same combination of e-commerce and fast-fashion that's hitting Nordstrom and Macy's. The retailer filed for bankruptcy this year, but just got a $160M lifeline to stay in operation.
