A weakness in consumer demand for apparel and the shift to online retail are hitting Macy's hard. The company has just slashed their sales forecasts on the heels of a drop in comp store sales of 5.6% in Q1. This was the 5th consecutive quarter of declining comp store sales for Macy's.
According to the Wall Street Journal's Suzanne Kapner, "Discount chains like T.J. Maxx and fast-fashion retailers such as H&M Hennes & Mauritz AB that can offer jeans as cheap as $17 and polo shirts for $10 are stealing foot traffic and hurting demand for the $50 jeans and $80 polo shirts that Macy’s sells."
The great news is that there is a significant push among consumers for value. This is where the secondary market shines. The bad news for Macy's is that their primary business will continue to suffer.
It is very likely that we will be seeing a flood of Macy's excess in the secondary market over this next quarter, so keep an eye on sites like BStockSupply.com to find some deals.