Are big-box retailers doomed to fail, or do certain companies/industries stand a chance to fight off Amazon?

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Department Store Blues

Investors pulled out their shopping bags, as Macy’s (+10.98%), Kohl’s (+0.93%), and Nordstrom (+4.52%) all reported for Q3. If you haven’t been inside a mall circa 2012, you’re not alone. Department stores have been cast aside with the rise of e-commerce. Look no further than Macy’s, which has suffered same-store sales decline each of the last 11 quarters (this one was no different).

Or how about Nordstrom? The family that runs the retailer tried to take the company private but couldn’t even convince banks to touch the deal with a 10-foot pole. And maybe there’s a reason—same-store sales dropped 1%. 

Despite marginally positive news for both Kohl’s and Macy’s (the former increased same-store sales, the latter beat profit expectations), our lingering question is: 

How quickly can they shift to e-commerce while balancing store closures?

For Macy’s...not quickly enough. Growth in retail e-commerce is up 16% YoYwith Macy’s hovering around 13%. That may not feel significant, but when you’re talking tens of millions of dollars in potential sales, it is.

Nordstrom is a bit more innovative. It’s testing a hybrid model with its new, inventory-free 3,000 ft² stores. You’ll still get the fun of trying on clothes (while sipping on a martini) with the convenience of same-day delivery.

As for Kohl’s? It’s already sold its soul to the devil, listing products on Amazon and going as far as accepting in-store Amazon returns to drive traffic—think about that for a second...

So if there’s one takeaway from the Brew’s quarterly retail update, it’s this: Amazon is everywhere. *Cue eerie outro music...

Via Morning Brew