Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li>Donald <keyword id="19906203" type="General" weightage="100" keywordseo="trump" source="keywords">Trump</keyword> pledged to enforce a 10% blanket tariff on all imported goods to the US.</li><li>It is months before Trump's inauguration, but tariffs are already on the lips of global business leaders.</li></ul>As soon as Donald Trump won reelection, CEOs worldwide discussed his plans for <a target="_blank" href="https://www.businessinsider.com/global-reaction-donald-trump-election-victory-tariffs-trade-disputes-2024-11">a new</a><a target="_blank" class="" href="https://www.businessinsider.com/global-reaction-donald-trump-election-victory-tariffs-trade-disputes-2024-11"> era</a> of global tariffs. Although inauguration day is two months away, the leaders of consumer giants like BMW, Ikea, Airbus, and <keyword id="20017281" type="General" weightage="20" keywordseo="ralph-lauren" source="keywords">Ralph Lauren</keyword> were asked about the plans by the press and on earnings calls this week. Trump has vowed to impose a 10% blanket tariff on all foreign goods entering the US and up to 60% and 100% on goods imported from China and Mexico, respectively. He also floated a 100% tariff on imported vehicles and said he'd impose <a target="_blank" class="c-link" href="https://www.businessinsider.com/trump-tariff-threat-john-deere-economists-baffled-2024-9">a 200% tariff</a> on machinery giant John Deere if it continued with plans to move some production to Mexico. <h2>Asia</h2>During Trump's first term, the US and China imposed billions of dollars worth of tariffs against each other. Now, the potential for renewed trade disputes has concerned some Asian business leaders. <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/chinese-stocks-em-fx-currencies-rout-trump-election-stimulus-china-2024-11">Chinese stocks dropped</a> after news of Trump's election victory. <keyword id="23945005" type="General" weightage="20" keywordseo="shinji-aoyama" source="keywords">Shinji Aoyama</keyword>, a global executive vice president at Japan's Honda Motors, said on a Wednesday earnings call that new tariffs on Mexico would have a big impact on Japanese companies. Honda, for instance, has production plants in Mexico. "If the tariff is a permanent one — I suppose it could be not permanent — maybe we would go for the production elsewhere, which is not subjected to the US tariff that we could do it." Aoyama said that he did not expect tariffs to be imposed soon, but added that it would not be easy to stop production quickly in Mexico. "Whoever the president could be, we should not be too much swayed around by them," said Aoyama. <div type="image" title="Shinji Aoyama, global executive vice president of Honda, in a suit behind a grey background." height="2741" width="4000" msid="115088843" hostid="261"></div><keyword id="20489383" type="General" weightage="20" keywordseo="piyush-gupta" source="keywords">Piyush Gupta</keyword>, CEO of Singapore's top bank, DBS, said during a media briefing on Thursday that he found it hard to believe Trump would follow through with his proposed tariffs. "The better thing to do is to wait and see what policy they actually come up with. It's very hard to make projections at this point in time," said Gupta. Instead, he highlighted the impact Trump's policies could have on <a target="_blank" class="" href="https://www.businessinsider.com/federal-reserve-cuts-interest-rates-quarter-point-powell-inflation-election-2024-11">Fed rate cuts</a>. Fewer rate cuts would boost net interest margin — a key metric for banks. "I think a higher interest rate environment is generally better for DBS," Gupta said. He added that DBS would be focusing on the legal and regulatory risks associated with the Trump administration. "They could come up with different kinds of sanctions and other policies — you have to be on top of that." <h2>Europe</h2>Trump has repeatedly said he sees the European Union's trade policies as unfair. During his first term, he <a target="_blank" href="https://www.businessinsider.com/trump-threatens-to-tax-european-cars-if-the-eu-retaliates-against-us-tariffs-2018-3">imposed a number of tariffs</a> on key European industries, including steel, aluminum, and certain luxury goods. Europe responded in turn with tariffs on goods including bourbon whiskey, Harley-Davidson motorbikes, and Levi's. The US is Europe's top trading partner, leaving its businesses highly vulnerable to Trump's proposed 10% tariff. Sectors like automobiles, pharmaceuticals, and chemical products, which represent the lion's share of European exports to the US, would likely experience the biggest economic hit. Shares in BMW, Mercedes, and Volkswagen all fell in response to Trump's victory. The US is by far Germany's largest export market, with goods worth $170 billion sent in 2023, per <a target="_blank" class="" href="https://www.destatis.de/EN/Themes/Economy/Foreign-Trade/Tables/order-rank-germany-trading-partners.pdf?__blob=publicationFile">Germany's statistical authority.</a> On Wednesday, <keyword id="20964414" type="General" weightage="20" keywordseo="oliver-zipse" source="keywords">Oliver Zipse</keyword>, chairman of BMW, downplayed fears over tariffs during a third-quarter earnings call, citing the company's large US business. "We have a strong footprint there, which kind of protects us against anything which might happen on the geopolitical side," he told analysts. Zipse also told reporters, <a target="_blank" class="" href="https://www.reuters.com/business/autos-transportation/bmw-downplays-fears-over-us-tariffs-trump-election-win-2024-11-06/#:~:text=The%20U.S.%20market%20accounted%20for,carmakers%20in%20Europe's%20biggest%20economy">per Reuters,</a> that BMW "shouldn't be too nervous about what might happen." <div type="image" title="Oliver Zipse of BMW speaks in a blue suit behind images of motorbikes and cars." height="3203" width="4804" msid="115088838" hostid="261"></div>Arne Freundt, CEO of German sports brand <keyword id="19922141" type="General" weightage="20" keywordseo="puma" source="keywords">Puma</keyword>, took a similarly relaxed attitude to potential tariffs. "We can shift volumes to other countries swiftly in case of tariffs increase in certain countries," Freundt said. "Politics is politics," Ikea's CEO, Jesper Brodin, told Business Insider when asked about how Trump's tariffs would affect international business. "So we work with longer term cycles and investment frames, and so on. In Ikea, we are very clear on our direction." Guillaume Faury, CEO of the airline Airbus, was more concerned about how tariffs may impact prices. Addressing Trump's proposed tariffs during Airbus' third-quarter earnings call the day before the election, Faury warned that the cost of any new tariffs would be passed along to Airbus's airline customers, as in 2020. "We don't believe that's helping aviation and the competitiveness of the airlines and the aviation industry, but it's something we would be able to manage," Faury said. During his first term, Trump and the European Union were locked in <a target="_blank" href="https://www.businessinsider.com/trump-administration-slaps-tariffs-european-goods-2020-2">a long-running dispute</a> over aircraft subsidies, which the US said put Boeing at a disadvantage, and 15% tariffs were imposed on aircraft imported from the EU. Soon after Trump's departure from the White House, <a target="_blank" class="" href="https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3001">the two sides ended their dispute and axed the tariffs</a>, but renewed tariffs could lead to issues once again. <div type="image" title="Airbus general director Guillaume Faury" height="3000" width="4500" msid="115088848" hostid="261"></div>Martin Sorrell, executive chairman of the UK-based advertising company S4 Capital, described the President-elect as "good news" for North American businesses and companies during an earnings call on Thursday. "Whilst US business doesn't like to talk about it, basically US businesses wanted to see a Trump administration because it means low tax and low regulation," Sorrell said. He added that Europe would be more challenged because of the threat of tariffs. <h2>USA</h2>While tariffs are intended to protect domestic industries by making imports more expensive, companies whose supply chains include foreign contractors could see their costs rise. Justin Picicci, Ralph Lauren's CFO, said that over the last seven-plus years, the fashion brand has diversified its sourcing and developed alternative production for its key products. "Our global sourcing and supply chain is agile and well-positioned," Picicci said during an earnings call Thursday. "So we'll wait and see what, if any, future policy ultimately gets passed. But we've navigated tariffs successfully before, including not so long ago," Picicci said. The costs of tariffs are often passed onto the consumer in the form of price rises. But as demand for domestic goods increases, consumers see higher prices across the board. <keyword id="23945003" type="General" weightage="20" keywordseo="timothy-boyle" source="keywords">Timothy Boyle</keyword>, chief executive of Columbia Sportswear, said in an interview with <a target="_blank" class="" href="https://www.washingtonpost.com/business/2024/10/30/companies-tariffs-trump-prices/">The Washington Post</a> published on October 30 that the brand was set to raise prices if tariffs were imposed. "It's going to be very, very difficult to keep products affordable for Americans," he said. Correction: November 8, 2024 — An earlier version of this story misspelled the name of a Honda executive. He's Shinji Aoyama, not <keyword id="23945004" type="General" weightage="20" keywordseo="shinju-aoyama" source="keywords">Shinju Aoyama</keyword>.

CEOs around the world started talking about Trump's tariffs as soon as he won

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Business Insider/Mary HanburyA Ralph Lauren polo shirt at a TJ Maxx store.</div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/ralph-lauren">Ralph Lauren</a> has pulled back from department stores and off-price retailers to improve its brand image and boost profit margins.</li><li>It seems to be paying off: Early Tuesday morning, the luxury retailer <a href="http://investor.ralphlauren.com/phoenix.zhtml?c=65933&amp;p=irol-newsArticle&amp;ID=2386063">reported strong third-quarter earnings</a> for fiscal 2019. Operating income in North America soared 22.6% versus the year before, which analysts say is due to less discounting.</li><li>In fiscal 2018, the company closed about 25% of its US department store distribution. Now, it plans to retreat further from off-price stores. </li></ul>Ralph Lauren retreated from department stores and off-price retailers, and it's paying off. Early Tuesday morning, the luxury retailer <a href="http://investor.ralphlauren.com/phoenix.zhtml?c=65933&amp;p=irol-newsArticle&amp;ID=2386063">reported strong third-quarter earnings</a> for fiscal 2019. In North America, same-store sales numbers were up 4% overall, with especially impressive growth online. But analysts were also impressed by its bottom line: operating income soared 22.6% in North America versus last year. "Much of this is down to far lower rates of discounting, especially in the wholesale channel," Neil Saunders, managing director of GlobalData <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">Retail</keyword>, wrote in a note to clients on Tuesday. He continued: "We also see this as a sign that Ralph Lauren's more disciplined and focused approach to producing collections is allowing more product to be sold through at a fuller price."<h2>Less discounting to improve the brand image</h2>Chaotic racks of discounted designer clothing and handbags at TJ Maxx might be a bargain hunter's paradise (and a good way for brands to shift their old stock), but some apparel executives worry that it doesn't necessarily bode well for their brands' image in the eye of the consumer.Because of this, several luxury brands including <a href="https://www.wsj.com/articles/how-t-j-maxx-is-bucking-the-crisis-in-retailing-1497970910">Ralph Lauren, Michael Kors, and VF Corp - the parent company of brands such as North Face and Timberland</a> - have all said that they want to scale back from off-price and department stores.In 2017, Ralph Lauren CEO Patrice Louvet announced the company would pull back inventory from underperforming <a href="https://www.businessinsider.com/ralph-laurens-new-tactic-is-dangerous-for-macys-2017-8">department stores by as much as 25%</a>. Louvet was following in the footsteps of former CEO Stefan Larsson, who had <a href="https://www.bloomberg.com/gadfly/articles/2016-06-07/ralph-lauren-forecast-bad-news-for-department-stores">initiated similar attempts</a> to make the business more efficient.Read more: <a href="https://www.businessinsider.com/ralph-laurens-new-tactic-is-dangerous-for-macys-2017-8">Ralph Lauren is trying a new escape tactic to survive the retail apocalypse - and it's dangerous for Macy's</a>Larsson claimed that heavy discounting wasn't only damaging to profits but also to the overall brand image. <a href="https://fortune.com/2016/06/08/ralph-lauren-macys/">He said</a> that shoppers would only spend money on "exciting" apparel and "exciting isn't selling a generic product with more and more discounting."A spokesperson for Ralph Lauren confirmed to Business Insider that the company hds reduced its distribution to department stores by 25% but would not be pulling back any further at present. Instead, moving away from the off-price channel is now a priority.Company CFO Jane Nielsen told investors on an earnings call on Tuesday that the brand's strategy is to reduce its penetration in the off-price market and focus on using these stores as an "excess inventory clearance vehicle."To do so, Ralph Lauren will be keeping a tighter handle on inventory levels to avoid having any leftover unwanted stock that is vulnerable to markdowns, and reducing the amount of items that it makes specifically for off-price stores. <h2>What does this mean for off-price stores?</h2>The off-price channel has become one of the retail sector's sweet spots in recent years, but a lack of availability of product caused by tighter inventory levels and stores such as Ralph Lauren pulling back their off-price-specific collections could put pressure on this channel in the future.A spokesperson for TJ Maxx declined to comment on how this would impact business. However, in the past, it has been confident that these shifts are not a concern. "Availability has never been an issue for us, and with a vendor universe of more than 18,000 vendors, we have tremendous flexibility in the brands that we offer consumers," a spokesperson for TJ Maxx told Business Insider in <a href="https://www.businessinsider.com/luxury-brand-changes-bad-news-for-tj-maxx-2018-1">January</a> last year. <a href="https://www.businessinsider.com/intelligence/future-of-retail-ai?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen&amp;utm_content=ecommerce_ctgr_leadgen&amp;utm_campaign=ecommerce_ctgr_leadgen_future-of-retail-ai"></a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/bud-light-dilly-dilly-viral-commercial-super-bowl-campaign-2017-12">Bud Light's 'Dilly Dilly' just made a comeback at the Super Bowl with a weird crossover ad with Game of Thrones - here's what the phrase means</a></h3> <div> </div> </div>

Ralph Lauren has backed away from discounting, and it's bad news for TJ Maxx

This article is part of "<a target="_blank" rel="" href="https://www.businessinsider.com/category/workforce-innovation">Workforce Innovation</a>," a series exploring the forces shaping enterprise transformation.The C-suite is getting pretty crowded.The complexity of running a major business has meant some leaders have brought on a bevy of chiefs in recent years. Beyond the usual top jobs, some organizations now have chief experience officers, chief AI-ethics officers, and chief transformation officers.Critics see it as C-suite creep. Others see it as necessary diversification, arguing that more expertise than ever is needed to run a thriving enterprise — or simply to keep up.Leadership experts told Business Insider that rapid advances in tech, like artificial intelligence, help explain why CEOs might want to pad their bench. But some suggested that having too many people at the top risked muddling decision-making and hurting productivity.Ram Charan, an author and consultant who's advised top execs and boards at Bank of America, Verizon, and Coca-Cola, said that many C-suites had grown too large and argued that solving big problems doesn't necessarily require additional execs."You don't need more people at the top," he said. "You need the right people at the top."More CEOs seem to think the ideal lieutenants are those in roles such as chief data officer, chief legal officer, and chief human resources officer. LinkedIn said in September that those were the <a target="_blank" href="https://economicgraph.linkedin.com/content/dam/me/economicgraph/en-us/PDF/state-of-the-c-suite.pdf">fastest-growing C-suite roles</a> on its platform from 2022 to 2023.Jason Saltzman, director of growth at Live Data Technologies, said a review of its figures found that, since 2019, growth at US public companies in newer C-suite roles like chief customer officer and chief corporate responsibility officer has been 9.8% faster than that of a half dozen traditional roles like CFO and CMO.Charan said the number of challenges — particularly external ones — coming at companies has "grown exponentially" from about a decade ago. These include AI and shifts in how companies earn money and how consumers behave."Somebody has to make sense out of that and determine priorities," Charan said.Charan recommends the C-suite comprise a handful of "broader-based" execs who can think critically and serve as a CEO's sounding board.He said CEOs could have specialists, like those in charge of risk management report to them even if they're not part of the C-suite. Still, he said, there shouldn't be too many people, because CEOs don't have the time to manage that many direct reports.Charan's recommendations might seem at odds with the approaches of CEOs like <a target="_blank" href="https://www.businessinsider.com/nvidia-jensen-huang-ceo-should-have-most-direct-reports-2024-3">Jensen Huang at Nvidia</a> and <a target="_blank" href="https://www.businessinsider.com/elon-musk-loses-4-top-executives-ahead-of-robotaxi-event-2024-10">Elon Musk at Tesla</a>, both of whom are said to have dozens of direct reports. But Charan said that in Huang's and Musk's cases, they and a few other people "make the priority decisions."Janet Sherlock, who recently retired as the chief digital and technology officer at Ralph Lauren and who has a background in researching organizational design, said executives and board members are sometimes reluctant to question whether a person in a top management position has the skills for the role.Sherlock gave the example of a company that has a chief information officer but then hires a chief analytics officer — the hiring of that person could suggest to employees that the information chief "wasn't up to the task."On the flip side, Sherlock said, firms specializing in selling data services might justifiably have several people in leadership who focus on analytics. But she said a lineup that includes a chief marketing officer, a chief information officer, and a chief customer-experience officer might indicate insufficient internal coordination.Sherlock said the amount of innovation and change over the past 20 years had in some cases led to organizational bloat at the top."Instead of reworking and rewiring organizations, companies have often thrown leaders and people at problems," she said.Sherlock speculated that many organizations were reaching a "critical breaking point" and that some might try to thin their C-suites."Do I need a customer-experience officer whenever I have a chief commercial officer, a chief information officer, and a chief marketing officer?" she said, adding, "Or are the processes or executive skill sets sufficient?"Sherlock said that in the research she completed while earning a doctorate in organizational leadership, she found that overlap among executives' remits was associated with worse productivity, product quality, time to market, morale, and employee engagement."This is so much more harmful than CEOs, CHROs, or boards of directors are aware," Sherlock said.She said that's why it's essential to maintain clear responsibilities and decision-making lines.Christine Porath, a professor at the University of North Carolina at Chapel Hill's business school who wrote the book "Mastering Community," said collaboration among C-suite executives could help connect disciplines."That also helps role-model that for other employees and the organization as a whole, which I think is very healthy," Porath said.She said research she helped conduct indicated that even before the pandemic many workers didn't feel a sense of community at work — and then the pandemic made that worse.She said leaders often ask how they can foster greater connection and community in the workplace. "It really starts at the top," Porath said.Porath said it wouldn't do any good to just slap an organization's values on a website or an office wall."If you don't see leaders living them, people tend to get very cynical quickly," she said, "and, unfortunately, they will follow leaders' behavior."Dorie Clark, a communication coach who teaches at Columbia Business School and who wrote "The Long Game," said it's understandable why many C-suites would be organized with clear distinctions in responsibilities."You know where the buck stops, and there's no debate," she said.But a chief marketing officer, for example, still has to know "an incredible amount" about technology, Clark said. She argued that a C-suite should have those clear lines of responsibility while still allowing for close collaboration.It's possible to go too far, she said. Clark pointed to organizations that experimented with co-CEOs — a setup she said "almost never goes that well.""When the lines of authority and responsibility are blurred, people have a hard time with that," Clark said. Workers don't necessarily who to go to, and needing to loop in more people can slow down certain processes, she said.Not everyone thinks the C-suite has bulked up too much.Ty Wiggins, the global lead of the CEO- and executive-transitions practice at the leadership advisory firm Russell Reynolds Associates, said that as tech like AI becomes more important within organizations, bringing more tech experts into the C-suite beyond chief technology officers or chief information officers will be necessary.He said Russell Reynolds recommends all C-suite leaders become proficient in AI and other technologies.Wiggins, who wrote the book "The New CEO," argued that leaders needed to have "closer connections" to different aspects of the business."You have to realize when you're a CEO that the information coming to you is filtered multiple times before it gets to your desk," he said.Wiggins said most CEOs' remits had expanded over the past 15 years — they often now include digital transformation, employee well-being, sustainability, and diversity, equity, and inclusion efforts, among other things.Wiggins said that's why there's more pressure on C-suite leaders to act as a well-informed unit of experts rather than technical specialists. That can mean extra work for them."The demands that have been put on them are increasing," he said.

Why the C-suite is getting so big

<ul><li>US stocks fell about 1% on Thursday as bond yields jumped to their highest level since November.</li><li>The 2-Year US Treasury yield hit 4.50% as investors expect more interest rate hikes from the Federal Reserve.</li><li>A slew of positive earnings results from consumer-oriented firms had provided an initial boost to stocks in morning trades.</li></ul>US stocks fell about 1% on Thursday as bond yields rose to their highest level in months on expectations that the Federal Reserve will keep rates higher for longer.Stocks were initially higher in early morning trades after a slew of earnings from consumer-oriented companies bested investor expectations. <a href="https://markets.businessinsider.com/stocks/dis-stock">Disney</a> surged as much as 6% after its theme park division posted solid results and the company said it would embark on a restructuring strategy that would save billions of dollars and cut thousands of jobs. The stock eventually erased all of those gains and fell about 2%. Activist investor Nelson Peltz said he would end his campaign against Disney.Other companies that reported solid earnings results included <a href="https://markets.businessinsider.com/stocks/sono-stock">Sonos</a>, <a href="https://markets.businessinsider.com/stocks/pep-stock">PepsiCo</a>, <a href="https://markets.businessinsider.com/stocks/tpr-stock">Tapestry</a>, <a href="https://markets.businessinsider.com/stocks/rl-stock">Ralph Lauren</a>, and <a href="https://markets.businessinsider.com/stocks/wynn-stock">Wynn Resorts</a>, all consumer-driven companies that suggest the consumer is still spending money and remains on solid footing.So far 63% of <a href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> companies have reported fourth-quarter earnings results. Of those companies, 68% have beaten profit estimates by a median of 6%, while 63% have beaten revenue estimates by a median of 4%, according to Fundstrat. Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:<ul><li><a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" rel="">S&amp;P 500</a>: 4,081.52, down 0.88%</li><li><a href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" rel="">Dow Jones Industrial Average</a>: 33,699.88, down 0.73% (249.13 points)</li><li><a href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" rel="">Nasdaq Composite</a>: 11,789.58, down 1.02% </li></ul>Here's what else is happening this morning:<ul><li>Robinhood's board of directors <a href="https://markets.businessinsider.com/news/stocks/robinhood-buyback-sam-bankman-fried-575-million-stake-2023-2">authorized a plan to purchase FTX founder Sam Bankman-Fried's stake</a> in the company worth more than half a billion dollars. </li><li>Robinhood ended up <a href="https://markets.businessinsider.com/news/stocks/robinhood-meme-stock-short-selling-cosmos-health-stock-market-news-2023-2">down $57 million in a single day after a glitch let its trading app</a> customers temporarily short a meme stock, according to company executives.</li><li>Chinese e-commerce giant <a href="https://markets.businessinsider.com/news/stocks/chinese-e-commerce-giant-alibaba-microsoft-baidu-google-chatgpt-rival-2023-2">Alibaba is testing its own rival to ChatGPT,</a> joining the tech race to tap into investors' frenzy over artificial intelligence products.</li><li>Data from the <a href="https://www.bloomberg.com/billionaires/" target="_blank" rel="noopener nofollow">Bloomberg Billionaires Index</a> show the world's 10 richest people have added $139.8 billion to their net worth since the beginning of January, as stocks staged a comeback from a dismal 2022.</li><li>Bank of America said <a href="https://markets.businessinsider.com/news/stocks/microsoft-bing-chatgpt-ai-search-war-google-openai-bofa-tech-2023-2">Google has a long-term advantage</a> when it comes to the competition that's heating up in search, which has been enabled by artificial intelligence integration between ChatGPT and Microsoft's Bing.</li><li>PepsiCo's CFO said <a href="https://markets.businessinsider.com/news/stocks/stock-buybacks-dividends-increase-cash-investments-joe-biden-taxes-penalty-2023-2">companies will shell out bigger dividends</a> if President Joe Biden's plan to increase stock buyback taxes passes.</li></ul>In commodities, bonds and crypto:<ul><li><a href="https://markets.businessinsider.com/commodities/oil-price?type=wti&amp;utm_medium=ingest&amp;utm_source=markets" rel="">West Texas Intermediate crude</a> oil fell 1.01% to $77.60 per barrel. <a href="https://markets.businessinsider.com/commodities/oil-price?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" rel="">Brent crude</a>, oil's international benchmark, dropped 1.18% to $84.09.</li><li><a href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets" rel="">Gold</a> dropped 0.97% to $1,872.30 per ounce.</li><li>The yield on the 10-year Treasury rose five basis points to 3.68%.</li><li>Bitcoin fell 2.40% to $22,030, while ether dropped 2.72% to $1,579. </li></ul>

US stocks fall as bond yields jump to their highest level since November

<ul class="summary-list"><li><keyword id="11898811" type="UNKNOWN" weightage="60" keywordseo="macys" source="Orion">Macy's</keyword> and <keyword id="12579656" type="UNKNOWN" weightage="60" keywordseo="nordstrom" source="Orion">Nordstrom</keyword> reported strong earnings and upped their financial guidance for the year.</li><li>They have upscale shoppers to thank, who haven't slowed spending despite record inflation. </li></ul>Record inflation may be hitting some Americans' finances hard, but higher-income shoppers haven't slowed down — and it's giving some department stores the upper hand. Amid a <a href="https://www.reuters.com/business/retail-consumer/retail-apocalypse-wall-street-shaken-by-inflation-induced-earnings-hits-2022-05-19/">dreary few weeks of retail earnings</a>, Nordstrom and Macy's were a bright spot, reporting strong first-quarter earnings despite high inflation and fears of an impending recession. Nordstrom's first-quarter sales exceeded analyst expectations and the retailer <a href="https://markets.businessinsider.com/news/stocks/nordstrom-lifts-fy22-outlook-shares-up-6-1031486326">boosted its full-year financial outlook</a>; Macy's raised its profit outlook for the year after reporting <a href="https://markets.businessinsider.com/news/stocks/macy-s-boosts-fy22-adj-eps-outlook-as-q1-results-top-estimates-1031490678">first-quarter results that surpassed Wall Street estimates</a>. "While macroeconomic pressures on consumer spending increased during the quarter, our customers continued to shop," Macy's CEO Jeff Gennette said in a statement Thursday. Other high-end retailers are reporting the same. <a href="https://www.reuters.com/business/retail-consumer/ralph-lauren-forecasts-upbeat-annual-revenue-strong-demand-2022-05-24/">Ralph Lauren said demand hasn't slowed</a> and called its customer base "resilient." Luxury jacket-maker <a href="https://www.reuters.com/markets/us/luxury-retailers-lean-affluent-customers-dodge-inflation-bullet-2022-05-25/">Canada Goose said its customer confidence is "strong."</a>So while many Americans are <a href="https://www.newsweek.com/inflation-crisis-americans-skimp-milk-half-gallons-1708264">switching to half-gallons of milk to save money</a> or opting for cheaper, private-label brands to save a few dollars here and there, inflation hasn't yet impacted higher earners, who are still shelling out for <keyword id="12308717" type="UNKNOWN" weightage="60" keywordseo="luxury-goods" source="Orion">luxury goods</keyword>. The retailers who serve those customers have been insulated from inflation-era spending cuts, at least so far, but the retailers caught in the middle are already starting to feel the strain. <h2>An impending <keyword id="11970887" type="UNKNOWN" weightage="60" keywordseo="retail-apocalypse" source="Orion">retail apocalypse</keyword>, but not for everyone</h2><div type="image" title="A man shops for t-shirts in the menswear department of Nordstrom in New York City" height="1666" width="2222" msid="91837331" hostid="261"></div>Over the past few weeks, <keyword id="11893281" type="UNKNOWN" weightage="60" keywordseo="walmart" source="Orion">Walmart</keyword>, <keyword id="11897509" type="UNKNOWN" weightage="60" keywordseo="target" source="Orion">Target</keyword>, <keyword id="11896320" type="UNKNOWN" weightage="60" keywordseo="kohls" source="Orion">Kohl's</keyword>, Gap, Abercrombie &amp; Fitch, and Burlington Stores all reported disappointing earnings.Some cited high transportation costs as the culprit, while others blamed the comparison to last year, when government stimulus checks meant Americans were flush with cash with fewer ways to spend it. Walmart said its inventory levels are too high and customers are buying fewer items than usual, resulting in a worse-than-expected quarter. Dennis Dick, a trader at Bright Trading, <a href="https://www.reuters.com/business/retail-consumer/retail-apocalypse-wall-street-shaken-by-inflation-induced-earnings-hits-2022-05-19/">told Reuters last week</a> that this is "a little bit of a <keyword id="11893588" type="UNKNOWN" weightage="100" keywordseo="retail" source="Orion">retail</keyword> apocalypse." "It was Walmart ... and everybody thought it was a one-off," he said. "Now that Target missed earnings (by) a lot more than Walmart even did, they're scared that the consumer is not as strong as everybody thinks."But it seems that not every type of consumer is feeling the crunch. At Nordstrom, shoppers are buying apparel and shoes for social occasions, returning to the office, travel, and just typical wardrobe refreshes, CFO Anne Bramman said during Tuesday's first-quarter earnings call. "To date, we haven't seen an adverse impact on customer spending from inflationary pressures, which we suspect is due to the higher income profile of our customer base," she said.Macy's also made a point to highlight the stability of its higher-income shoppers. At Macy's-owned Bloomingdales, sales jumped 28% during the quarter, more than twice Macy's sales increase during the same period. During the analyst call Thursday, Gennette said the Bloomingdale's brand, which is more upscale than Macy's, is "quite hot right now, and we're really banging on all cylinders." Gennette said that across Macy's portfolio, which also includes luxury cosmetics and skincare company Blue Mercury, customers with an income of less than $75,000 have been most affected by what's happening in the economy."When I look at kind of the mid-tier customer as well as the luxury customer, above $150,000, very healthy, and spend levels were quite strong," Gennette said. "I do think that when you look at the affluent customer, we're not seeing a slowdown there."

Department stores like Macy's and Nordstrom are bucking gloomy retail trends, and it shows inflation hasn't slowed spending for a large swath of Americans

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>Nearly-rich customers are increasingly unwilling to spend - and that's bad news for the US economy. People who make between $100,000 and $250,000 are "making very careful decisions" on discretionary purchases, luxury marketing expert <a href="http://www.bloomberg.com/news/articles/2015-06-01/frugality-of-high-earners-in-u-s-shows-long-shadow-of-recession">Pam Danziger told Bloomberg News</a>. "That's smart for them, but it's certainly not good for the economy."Companies like Ralph Lauren, Coach, and Michael Kors are going after consumers aged 25-34 with money to spend but who aren't rich, Danziger said in a recent report. These customers make up 18% of households. She calls <a href="http://smallbusiness.forbes.com/small-business-braintrust/pam-danziger-602">calls these customers HENRYs</a>, for "High Earners Not Rich Yet."But as these customers suffer sluggish income growth, they are increasingly conservative with their dollars. This has led to disappointing earnings reports from aspirational companies like Ralph Lauren, Coach, and Michael Kors, Danziger says. The group is "the new face of the mass-market customer, since the traditional middle-class lost so much discretionary spending power in the recent recession," Danziger writes. <div class="KonaFilter image-container display-table"><div><div class="image on-image"></div></div></div>Retailers like Macy's, J.C. Penney, and Kohl's have also <a href="http://www.businessinsider.com/kohls-corporation-q1-earnings-may-14-2015-5">reported</a> mediocre results. The companies have blamed a variety of temporary factors - such as delayed inventory shipments, bad weather in February, and fewer international tourists - for the slowdown in business.But Americans are increasingly spending less on clothes and home furnishings, a trend that could hurt the companies' businesses for years to come.While lower gas prices mean consumers theoretically have more disposable income, the Commerce Department <a href="http://www.businessinsider.com/april-retail-sales-may-13-2015-5">recently reported</a> that US <keyword id="6354851" type="ORGANIZATION" weightage="100" keywordseo="Retail">retail</keyword> sales were flat as shoppers have other priorities.A recent report by Morgan Stanley shows that millennials are spending more on expenses like rent, cellphones, and personal services than young people a decade ago. This leaves less money for buying clothe and accessories.Macy's CFO Karen Hoguet blamed Netflix for her brand's slow sales.Electronics and online subscriptions are taking market share from apparel, Hoguet said at a recent conference covered <a href="http://www.marketwatch.com/story/macys-cfo-blames-millennials-netflix-and-lipstick-haters-on-shifting-retail-landscape-2015-03-24">by MarketWatch</a>."I think part of that is the customers are buying other things, whether the electronics, cable services, Netflix, whatever," <a href="http://www.marketwatch.com/story/macys-cfo-blames-millennials-netflix-and-lipstick-haters-on-shifting-retail-landscape-2015-03-24">Hoguet said</a>.While some products, like cosmetics, are selling well with the younger set, Hoguet told analysts that today's consumers had priorities other than clothing and housewares."Shoppers are spending more of their disposable dollars on categories we don't sell, like cars, healthcare, electronics, and home improvement," <a href="http://seekingalpha.com/article/2675545-macys-m-q3-2014-results-earnings-call-transcript">Hoguet said in a call</a> with investors.Even when people do buy clothes, it's unlikely that they're willing to pay full price for them.Retail expert and author Robin Lewis <a href="http://therobinreport.com/the-forecast-share-wars-for-rest-of-2014/">writes on his website</a> that consumers will not pay full price because they have become addicted to promotions."With coupons, discounts, loyalty points, and gifts-with-purchase more the rule than the exception today, consumers are spending less because they can," he writes. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/michael-kors-isnt-cool-anymore-2015-4">It's official: Michael Kors isn't cool anymore</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="pueTJqdDrhpwZXwc3-tTyfqeZRjByVhG" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Customers called 'HENRYs' are disturbingly frugal - and it's killing companies like Michael Kors and Coach

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="https://commons.wikimedia.org/wiki/File:Children's_Playground,_Nicholas_Everitt_Park,_Oulton_Broad,_Lowestoft,_Suffolk_-_geograph.org.uk_-_24553.jpg">Wikimedia Commons</a></div></div></div>Stocks alternated between gains and losses throughout the day, but settled close to where they started on Monday.Without any major US economic data and no S&amp;P 500 companies reporting earnings, the news-starved market remained quiet with its record 30th straight trading day without a move of 1% in either direction.The S&amp;P 500 and Dow Jones Industrial Average ended in the red, but the tech-focused Nasdaq eked out a small gain.We've got everything you need to know in markets, but first, the scoreboard:<ul><li>Dow: 18,529.42, -23.15, (-0.12%)</li><li>S&amp;P 500: 2,182.64, -1.23, (-0.06%)</li><li>Nasdaq: 5,244.60, +6.22, (0.12%)</li><li>WTI crude oil: $47.05, -$1.47 (-3.03%)</li></ul><ol><li><a href="http://www.businessinsider.com/pfizer-acquires-medivation-for-14-billion-2016-8">Pfizer bought cancer drugmaker Medivation for $14 billion.</a> Pfizer outbid rivals including Sanofi, which had made a public bid of $9.3 billion in April, to acquire the maker of a game-changing cancer treatment. </li><li><a href="http://www.businessinsider.com/kobe-bryant-jeff-stibel-launch-investment-fund-2016-8">Kobe Bryant is launching a venture capital fund.</a> The former NBA star is partnering with tech entrepreneur and investor Jeff Stibel on a $100 million fund. According to the Players' Tribune, Bryant has already invested in 15 companies over the past three years.</li><li><a href="http://www.businessinsider.com/report-valeant-has-poached-a-new-cfo-from-zoetis-2016-8">Valeant has a new CFO.</a> The troubled pharmaceutical company named Paul Herendeen, formerly of animal health company Zoetis, to run its financials.</li><li><a href="http://www.businessinsider.com/costco-citi-card-is-still-a-nightmare-for-members-2016-8">Costco is having even more problems with its credit card.</a> Some users of the discount retailers' cards were sent messages from Citi, which backs the cards, informing them their accounts had been closed. Citi said this mistake was caused by a computer error.</li><li><a href="http://www.businessinsider.com/folger-hill-hedge-fund-stumbles-after-pedigreed-start-2016-8">Folger Hill, a hedge fund run by an acolyte of Steve Cohen, has lost one-third of its assets.</a> Due to redemptions and losses in the markets, the formerly $1.1 billion fund run by former SAC Capital employee Solomon Kumin has lost a significant portion of its assets.</li><li><a href="http://www.businessinsider.com/speedo-ends-ryan-lochte-sponsorship-2016-8">Ralph Lauren and Speedo are ending their endorsement deals with Ryan Lochte.</a> The swimmer is being dropped after he "overexaggerated" a story about being robbed at gunpoint in Rio de Janeiro, Brazil while he was there for the Olympics.</li></ol>Additionally:<a href="http://www.businessinsider.com/pinal-county-arizona-has-no-obamacare-insurers-2016-8">For the first time ever, there's a county with no Obamacare insurers</a>.<a href="http://www.businessinsider.com/correlation-between-crude-oil-and-stocks-has-broken-down-2016-8">Oil doesn't matter to stocks anymore</a>. <a href="http://www.businessinsider.com/vancouver-housing-bubble-chart-august-2016-2016-8">If you look at it this way, Vancouver isn't in a housing bubble.</a><a href="http://www.businessinsider.com/non-residential-construction-spending-set-to-peak-morgan-stanley-2016-8">In other real estate news, Morgan Stanley thinks one section of the market is peaking.</a><a href="http://www.businessinsider.com/energy-companies-are-facing-another-huge-problem-2016-8">America, and energy companies in particular, have a massive retirement problem.</a><a href="http://www.businessinsider.com/donald-trump-ties-2016-8">In political fashion news, BI's Linette Lopez thinks Donald Trump is bad at tying ties.</a> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/usain-bolt-wayde-van-nierkerk-maximum-human-running-speed-olympics-rio-2016-8">Usain Bolt is only 0.1 seconds away from reaching what may be peak human speed in the 100-meter race</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="V5cTBkNTE6Z6jpzHXcUTC8Vtu7hl-FE1" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

STOCKS SEESAW: Here's what you need to know

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Thomson ReutersA woman shops for a present at the scarf section inside Macy's Manhattan department store in New York</div></div></div>The days of full-priced department store merchandise might be over. Macy's <a href="http://www.businessinsider.com/macys-2q-earnings-2015-8">same-store sales</a> declined 2.6% in the second quarter, and the company blames consumers who are increasingly hesitant to pay for brand name clothing and handbags. While sales at off-priced retailers like T.J. Maxx are soaring, traditional department stores are being forced to discount. Macy's and Kohl's are both in the process of <a href="http://www.businessinsider.com/kohls-opening-stores-for-returns-2015-5">launching lower-priced</a> outlet stores. Macy's CFO Karen Hoguet told investors that healthcare, electronics, and home improvement are getting a bigger share of consumer dollars. Younger consumers are also moving away from brand names and logos, a trend that is also killing teen retailers like Abercrombie &amp; Fitch and Aeropostale. High-end department store Bloomingdale's, which is also owned by Macy's, was also hurt by the discounting consumers increasingly demand. <div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://www.flickr.com/photos/ztil301/4712571527/in/photolist-8brake-8buqcW-8braAz-8buom9-gaAKNK-nM7WoZ-Pquth-7SKs5k-fDhCcN-Fsj2L-e6LHF-61N58e-oDTMim-opqAQQ-ch1zT-5Rgafi-bzhTBG-788ja4-oFDDAZ-7APCZz-boT3Y-k4dZCq-5aN9Pn-bwMYXF-bijAr4-68jLKS-5Lf8BV-8brb2M-8br9jB-8brcSa-8burfN-8burU3-8br7LV-8bur45-8br7At-8bus4s-8butQQ-8brauK-8bupJ3-8br9uK-8br8iD-8br8Yx-8br8ND-8brbMF-8butFd-8brcbt-8busC1-8brb8g-8br7q2-8buubh">Flickr/Natalie Litz</a>Shoppers are increasingly choosing discounts over the experience of going to a luxury department store.</div></div></div>People who make between $100,000 and $250,000 are "making very careful decisions" on discretionary purchases, luxury-marketing expert <a href="http://www.bloomberg.com/news/articles/2015-06-01/frugality-of-high-earners-in-u-s-shows-long-shadow-of-recession">Pam Danziger told Bloomberg</a>."That's smart for them, but it's certainly not good for the economy," she said.Companies including Ralph Lauren, Coach, and Michael Kors are going after consumers ages 25 to 34 with money to spend but who aren't rich, Danziger said in a recent report.These customers make up 18% of households, but as they suffer sluggish income growth, they are increasingly conservative with their dollars.<keyword id="6354851" type="ORGANIZATION" weightage="100" keywordseo="Retail">Retail</keyword> expert Robin Lewis <a href="http://therobinreport.com/the-forecast-share-wars-for-rest-of-2014/">writes</a> that consumers won't pay full price because they've become addicted to promotions. "With coupons, discounts, loyalty points and gifts-with-purchase more the rule than the exception today, consumers are spending less because they can," he writes. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/denise-bidot-goes-un-retouched-2015-6">Plus-sized model Denise Bidot goes un-retouched in a new swimsuit campaign promoting body acceptance</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="p3Nm92dTrW6tAgKV1qNqhh0ImiZbvaRm" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Frugal customers are becoming an ominous threat to Macy's

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Mallory Schlossberg/Business InsiderMacy's Last Act</div></div></div>Macy's in New York City is an iconic destination.But a recent visit to the Herald Square store shows the magic appears to have been lost. Walk past the licensed sections that are operated by their companies, like beloved cosmetics brands MAC and SK-II, and premiere brands that encase their handbags behind glass, like Gucci and Louis Vuitton, and ascend the escalators. You'll see disarray, you'll see ample discounts, and you might smell a faint whiff of foul yogurt if you walk past the kids' section.And it's not just Herald Square. The company as a whole is ailing.Sales have been down for five quarters in a row. For the first quarter of fiscal 2016, sales were dwn 7.4%. The company has openly discussed that foot traffic has been falling."The number of transactions declined 7% in the quarter, which is far worse than what was experienced last year," CFO Karen Hoguet said on a recent earnings call.Macy's has been trying to figure out how to get people back into stores - but its tactics might be the risk the reputation it may be trying to resuscitate.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Mallory Schlossberg/Business InsiderInside Macy's Herald Square</div></div></div>Obviously, the easy way to bring back foot traffic is to lure consumers with sales. It's a trick that's been <a href="http://www.businessinsider.com/retailers-have-trained-consumers-to-shop-on-sale-2016-6" target="_blank">employed by many of Macy's peers</a> in the mall. Nordstrom, arguably the more prestigious department store of the two, has even admitted that discounts aren't attractive to its consumers."Where we're seeing a big miss is in our clearance and promo - promotional business. So what we take away from that is, number one, the clearance and promotional environment is really noisy," copresident Erik Nordstrom said on an earnings call in May. "There's a lot of excess product out in the marketplace. It's certainly easy to shop online. There's some heavy, heavy discounting going on. And we're seeing that effect in our business." Nordstrom, however, has found a (semi) saving grace: its off-price business.The company's Rack stores have been its quiet success story. Though the fact that its Rack stores out number those of Nordstrom - there are 200 Rack stores in the United States, compared to 118 full-line stores in the country - and the company has plans to have <a href="http://www.businessinsider.com/nordstrom-rack-is-expanding-like-crazy-2015-10" target="_blank">300 by 2020.</a> thereby undercutting ordstrom' reputation as a premiere retailer, the company can at least report that comparable sales for its entire off-price business was up 4.6% in the most recent quarter.The company reported negative comparable sales (4.3%) for its full price business.Obviously, there's hope in the off-price business, so it shouldn't be too surprising that Macy's has wanted to get in on the game, especially at a time when consumers are spending less on apparel and young shoppers are prone to shop at cheap, fast fashion stores. The company announced that it would<a href="http://www.businessinsider.com/macys-closing-40-us-stores-retail-california-new-york-virginia-2016-1" target="_blank"> shutter 40 locations in 2016</a>, and the company is also creating off-price standalone stores called Backstage.But that might take too long - so enter in-store Backstage locations, which are serving as "pilots," as the company called them in a first quarter earnings <a href="http://investors.macysinc.com/phoenix.zhtml?c=84477&amp;p=irol-newsArticle&amp;ID=2167378" target="_blank">press release</a>. As of the end of the first quarter, there were six already open within pre-existing stores.But even before that, the company launched new in-store clearance sections called Last Act, an ominous name of sorts, as though to suggest that should all not go well, Macy's would be taking its bow. (Though, it would be fitting if its next effort is called Macy's Encore; at least that suggests that people want more.)According to <a href="https://www.macysinc.com/macys/testing-and-learning/default.aspx" target="_blank">Macy's Testing and Learning pag</a>e, it was intended to serve as a way to research Macy's Backstage, and a way to test out a new pricing structure. It turns out it was successful, as every single Macy's now has a Last Act section.This is, though, for better or for worse.This was a a quick for Macy's to get into discounting game, and a way to capitalize on the off-price business, use excess store space, and course correct inventory problems. In theory, that made it a good move."It was genius at the time because, clearly Macy's [was] s coming out of a really bad ... holiday season," Gabriella Santaniello, analyst and founder of A Line Partners, told Business Insider.But there are two crucial problems: one, Santaniello says that the clearance market is incredibly crowded as it stands.And two: they're unsightly, and send a mixed message for a company that's supposedly trying to repair its image."I think Last Act was a genius short-term fix, but I think long term, they're going to have to have to reassess. But that's not who they [are]," she said."They're going to have to decide who they want to be," she said.Santaniello points to an <a href="http://www.businessinsider.com/macys-new-store-could-get-people-to-pay-full-price-2016-6" target="_blank">updated location in Columbus Ohio</a>, one that's been fixed to make shopping a more upscale, pleasant experience. In these nicer stores, she says, Last Acts do not fly. In lower-tier stores, though, they could be at home.Should Macy's decide to pull Last Act sections, though, she says that they can be excised easily given the fact that they're simply sections placed inside existing stores. The same can be said for in-store Backstage stores; they're easier to pull cut than an entire standalone stone should they ultimately fail.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Mallory Schlossberg/Business InsiderMacy's Last Act</div></div></div>So this tactic - while displaying some ingenuity - is proof that the off-price business isn't a foolish one; it's just that Macy's execution may be faltering in the eyes of some consumers. Some experts believe that standalone stores with discounts could fare better, but time will tell how Backstage stores perform."The off-price business is sensible if run as a stand alone entity, much the way Nordstrom run their Rack stores," Neil Saunders, CEO of consulting firm Conlumino, wrote in an email to Business Insider. "However, when put in mainstream department stores it undermines the whole proposition and gives the sense that Macy's is a discount business, which it isn't. In some ways the off-price business is an admission of failure: Macy's can't sell enough product at full price so it has to resort to discounting and off-price selling. However, the company should spend more time on fixing the problems that prevent them selling at full price rather than adding new bits to the business."The comparison to Nordstrom is funny, given that Nordstrom is ailing, too."Nordstrom is suffering but Nordstrom is a much more pleasurable experience," Santaniello said. Consumers want more, she said, not just "discounting and think tis going to fly out the door" - something, arguably, that the cluttered Macy's is doing.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Mallory Schlossberg/Business InsiderMacy's Last Act</div></div></div>A walk through a Macy's store shows that there are problems that run deeper than Last Act."The two core problems are product and store environment," Saunders wrote. "On the product front, ranges are not differentiated enough and there is not enough newness in store or online. The assortment is also jumbled. You don't walk into Macy's and feel that the store is well curated with things you want to buy in each department; you walk in and find a very variable offer in terms of quality, design and style."It's true - you could be in one Macy's and feel like it's occupied by several very different tenants, with varying levels of cleanliness. The wedding registry section is pristine, but the women's section is dismal. "The Mixing Room" - a section next to Last Act in Herald Square - blurs between the two sections.Many - though not all - sections, even beyond Last Act, look haphazard with items strewn about. "On the store front, many stores look shabby and under invested. They are not pleasant places to shop - something that's disastrous in an era when digital shopping is growing," Saunders wrote. <div class="KonaFilter image-container display-table"><div><div class="image on-image">Mallory Schlossberg/Business InsiderInside Macy's Herald Square</div></div></div>Macy's, though, has years of history embedded into it, and the announcement of new CEO Jeff Gennette - who will take over from current CEO Terry Lundgren in 2017 - serves a sign of potential promise. "Macy's isn't a spent force but it is ill and needs radical surgery if it is to survive over the longer term. A new CEO can fix these things, but only with focus and determination," Saunders wrote. "Whether the business is prepared to make the necessary changes remains to be seen. If it doesn't start fixing its issues, however, the rot will firmly set in and it will go the way of Sears: a business not worth rescuing."Macy's is trying. The aforementioned store in Columbus, Ohio is a start, and in New York, the company's millennial One Below has been trying to make shopping more accessible for young people, with an Etsy store and grab-and-go makeup sections, with millennial friendly brands like MAC and Benefit. The company is adding in-store Bluemercury makeup stores, and 22 locations will be open by the end of fiscal 2016. The company is also upgrading its jewelry department. CFO Hoguet has spoken to making the shopping more experiential, too, as though to capitalize on what millennials like to spend on...experiences.But all the 'experiential' merchandise in the world still belies what the heart of a purchasable experience is: it needs to be something that would get people to get off their computers, because whether retailers like it or not, e-commerce is a very real threat, and recent Morgan Stanley research predicted would hold the majority of the apparel market share by 2020. And though Macy's has blamed a myriad of problems - the <a href="http://www.businessinsider.com/macys-cfo-reveals-4-reasons-the-company-blew-it-last-quarter-2015-11" target="_blank">weather</a>, and more - for its slipping traffic, the way to lure people to get into stores would be to make shopping pleasant. That might not be as far fetched as, say, the Arcade in One Below. It might start simpler."A really nice clean updated bathroom makes a world of difference," Santaniello said. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/ralph-lauren-new-interactive-mirror-shopping-fitting-room-2015-11">Ralph Lauren's new fitting room has an interactive mirror that looks like something out of a sci-fi movie</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="ZwZW8weTrwz2ZJuRtUD0-eYUsA-Mtibk" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

You Searched For "ralph lauren s cfo" and got 9 results

CEOs around the world started talking about Trump's tariffs as soon as he won

Polly Thompson

Ralph Lauren has backed away from discounting, and it's bad news for TJ Maxx

Mary Hanbury

Why the C-suite is getting so big

Tim Paradis

US stocks fall as bond yields jump to their highest level since November

Matthew Fox

Department stores like Macy's and Nordstrom are bucking gloomy retail trends, and it shows inflation hasn't slowed spending for a large swath of Americans

Avery Hartmans

Customers called 'HENRYs' are disturbingly frugal - and it's killing companies like Michael Kors and Coach

Ashley Lutz

STOCKS SEESAW: Here's what you need to know

Bob Bryan

Frugal customers are becoming an ominous threat to Macy's

Ashley Lutz

We went to Macy's and saw why the brand might be headed the way of Sears

Mallory Schlossberg

Popular Keywords

Buying Guides