Macy's will lay off 10,000 employees - Will they get a Trump Bailout?

Discussion in 'Politics, Religion, Social Issues' started by oneMadRssn, Jan 5, 2017.

  1. oneMadRssn macrumors 68040

    oneMadRssn

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    #1
    http://fortune.com/2017/01/04/macys-holiday-season-closings/

    "Macy's on Wednesday said would close 63 stores this spring and eliminate 10,000 jobs as the struggling department store chain continued to grapple with weak sales during the holiday season."

    "Of the 10,000 jobs being cut, 3,900 will be at stores being closed this year as part of a plan announced in August when Macy's announced it would close 100 of its 730 namesake stores in the coming years. (Macy's Inc also operates the upscale Bloomingdale's chain.) Another 6,200 job cuts will come from streamlining operations and cutting costs so it can focus more on its digital business."

    This is certainly a bad New Year's gift for those employees, but Main Street retail has been losing to online retail for a while now.

    Notably 10,000 is a lot of jobs. 12.5x more than Trump/Pence saved with Carrier. Also notably the majority of those jobs are not retail-sales jobs, but rather high-quality office work jobs. Comparing to Carrier, the government should give Macy's $90million to "save" these jobs, right?

    What say you? Let the old die a natural death, or give them a bail out to save the jerbs?
     
  2. yaxomoxay macrumors 68020

    yaxomoxay

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    #2
    Sad news :( I hope all good to the employees...
     
  3. DearthnVader macrumors 6502

    DearthnVader

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    I don't think Trump will be helping Macy's.....
     
  4. vrDrew macrumors 65816

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    There is little that Trump, or indeed any politician, could do to change the fortunes of America's large department stores.

    Department stores like Macy's were the place where middle-class Americans went to buy everything from clothes to table-linens, TV sets, appliances, and furniture.

    But that business model has been decimated. These days poor and working class folks shop at Wal-Mart and the rich patronize specialty high-end retailers.

    There simply isn't much reason for most people to walk into a middle-market department store any more. They can't compete on price with Wal-Mart and Big Box electronics retailers. They certainly can't compete on the basis of variety and selection with Amazon.

    On a larger scale, the whole model of vast, enclosed suburban shopping malls is in serious danger of disappearing from the American landscape. And I must say I have very mixed feelings about that.
     
  5. RedOrchestra Suspended

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    #5
    Sad to watch the demise of department stores -- I continue to shop at them, but it does get a little harder to as they continue to rework their lines
     
  6. DearthnVader macrumors 6502

    DearthnVader

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    I can't argue with this, however it's a cycle we've seen before. I can't count the number of old closed down strip malls from the '70's and '80's, here in the South. As one retailer closes, other expand, usually resulting in a building boom, and leaving behind old, dilapidated malls.
     
  7. yaxomoxay macrumors 68020

    yaxomoxay

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    For once, I agree with you. I also have mixed feeling about the disappearance of shopping malls, especially because I see many urban renewals projects aka "downtown revivals". I think that we will see less department stores and more restaurants/pubs.
     
  8. oneMadRssn thread starter macrumors 68040

    oneMadRssn

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    #8
    I agree with your conclusion. It is bittersweet for me. On one hand, I spent a lot of time in high school in my local shopping mall. On the other hand, I don't think it's the government's job to bail out struggling businesses unless not acting would result in a dire economic situation. Just like milk delivery, ice mining, and shoeing horses, some industries are simply replaced by newer things (yes, you can still find someone to shoe a horse and deliver milk, but it's a tiny fraction of what it once was).

    I disagree with your assessment about retail though. Even Wal-Mart isn't doing as well as they hoped in the brick-and-mortar retail space. Walmart.com is bringing in a lot of revenue for them. It really is brick-and-mortar vs. online, in every socioeconomic band and every product category. Some categories are late to be hit by it, but they will all eventually be hit by it. Not too long ago people said it would be impossible to buy a mattress online - yet we now have a dozen online mattress retailers. Not too long ago people said you will never be able to buy a car online - yet you can complete an entire Tesla order all online, and more are on the way. No category is safe from this.

    On the bright side, before malls it was the town squares that were the "social center" of a region. Malls moved this, and they became the "social center" of a region, and town squares languished. Maybe with online shopping become the only way to shop for goods, there is an opportunity for town squares to reclaim the "social center" status by offering services that cannot be bought online. Indeed, this is happening from what I can see. The town center where I grew up used to have a cheese store, a shoe store, a bread store, 2 clothing stores, a sports supply store, and 2 pharmacies. Many of them went out of businesses when the local mall was greatly expanded. Today the town center is all restaurants, salons, and bankers. I'm not sure it's better, but I'm glad it's full of things that by definition require in-person service.
     
  9. yaxomoxay macrumors 68020

    yaxomoxay

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    #9
    Spot on. I see the same reality here.
     
  10. thewitt macrumors 68020

    thewitt

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    There won't be a bail out. This president is a businessman, not a community organizer.

    Macy's will reduce its bloated management ranks and close 10% of its stores that are losing money. This will turn around the profitability of the anchor stores and settle down their balance sheet.
     
  11. DrewDaHilp1 macrumors 6502a

    DrewDaHilp1

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    Let's not forget that Sears and K-Mart are on the closing lists. Sears the company that owned the catalog market failed to see, adjust and adapt to the on-line market and store closings and job losses are the result. Amazon destroyed brick and mortar shopping just as Wal-mart did when they went big destroyed small mom and pop shops. If anything brick and mortar stores are a show room for Amazon.
     
  12. oneMadRssn thread starter macrumors 68040

    oneMadRssn

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    #12
    Setting aside brands and specific companies:

    Why are old manufacturing jobs inherently worth saving but old retail and management jobs not worth saving?

    Another way of saying it, in all industries some substantial percent of jobs can be eliminated by improving efficiency. No job is exempt from this; manufacturing, management, retail, all jobs. How efficiency is improved doesn't matter: it can be by eliminating bloat, combining roles, reducing redundancy, moving the jobs to lower-wage regions, automation, software, etc. When a company decides to take measures to do one of these things that will result in lost jobs, why are some companies worth bailing out and other companies not worth bailing out?
     
  13. Chew Toy McCoy macrumors regular

    Chew Toy McCoy

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    Conundrum for Trump. Will he use this opportunity to rail on Amazon for putting traditional stores out of business or praise them for all the low wage paying distribution center jobs they are creating along with all the home delivery carrier jobs.
     
  14. DrewDaHilp1 macrumors 6502a

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    No company is worth a government bailout.
     
  15. DearthnVader macrumors 6502

    DearthnVader

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    No government is worth a bailout, we should just be electing our bankers.
     
  16. thewitt macrumors 68020

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    I would not have bailed out the auto manufacturers either. Ford didn't take it and they did exceptionally well.

    I would not have bailed out Wall Street when subprime loans failed. The government did this because forging subprime loans on the banking industry was the start if the scam. The bail out was the ending. Clinton and his cronies made millions as a result.
     
  17. jkcerda macrumors 6502

    jkcerda

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    #17
    agreed. but we practice "corporatism" in the U.S instead of capitalism, only the poor practice capitalism and can fail.
     
  18. DearthnVader macrumors 6502

    DearthnVader

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    Most of the parts suppliers would have folded without the bailout, Ford gets it's parts from them too. How well would Ford have done, if they couldn't get the parts to build their automobiles?
    --- Post Merged, Jan 5, 2017 ---
    From time to time it becomes necessary to save capitalism from the capitalists.
     
  19. DrewDaHilp1 macrumors 6502a

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    I'm sure they could have adjusted to only having to supply one manufacturer.
     
  20. pdqgp macrumors 68020

    pdqgp

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    Sad but when businesses don't right their own ships the market and their customers will. I hate seeing the one in our local Mall close as I heard the same location is also losing a couple Limited Stores and Men's Warehouse, etc. both of which are moving to stand alone locations for better traffic. No many go to malls any more except walkers and workers. I went to our local mall twice in 2016. Once in Jan 2016 and once in Dec 2016.
     
  21. DUCKofD3ATH Suspended

    DUCKofD3ATH

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    Sears is closing 150 stores and selling the Craftsman brand to Black & Decker. More signs of that healthy Obama economy, amirirte?
    --- Post Merged, Jan 5, 2017 ---
    Agree in general. There are a few cases where predatory export behavior by other nations could warrant a bailout to save American companies, but otherwise: no.
     
  22. tgara macrumors 6502a

    tgara

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    #22
    Indeed, this is true, sadly.

    Sears just announced that it is closing 150 stores and selling its Craftsman tool brand to Stanley Black & Decker for $900 million.

    I love going to Sears and hanging out in the Craftsman tool section. For me, it was like being in a candy store. Some stores even serve popcorn! I guess we will see what Stanley does with it. I hope they keep Craftsman going, it's an iconic American brand.
     
  23. DrewDaHilp1 macrumors 6502a

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    Craftsman is being sold to Stanley.
    Wait is Stanley B&D the same now?
     
  24. DUCKofD3ATH Suspended

    DUCKofD3ATH

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    Yup
     
  25. DrewDaHilp1 macrumors 6502a

    DrewDaHilp1

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    Filed under Today I learned.
     

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