Off-Price Retailers Succeed While Traditional Retailers Shrink
The retail industry had a tough Q4 as shoppers continued the migration from department stores to off-price chains.
JC Penney reported a 0.7% drop in same-store sales and announced Friday it plans to close 130 to 140 stores over the next few months, Reuters reports. Nordstrom watched its comparable sales fall 2.9% over the quarter, and Macy’s said it will close 100 stores while exploring deals to lease parts of its surviving locations.
But Q4 wasn’t bad for everyone — despite slowing sales at its parent company, Nordstrom Rack enjoyed a 10.7% surge in revenue and a 4.3% jump in comparable sales, the Washington Post reports. The contrast continued beyond Nordstrom and Nordstrom Rack as traditional retailers struggled while sellers like TJ Maxx and Marshalls picked up the slack.