End of the World - Macy's to Shutter 10 Stores

It is amazing how the media can jump on an event and make it seem like the ever shrinking economy is burying retailers alive. Today we see articles talking about how the highly compensated executives at Macy's are now forced to close 10 stores. Sounds terrible doesn't it? But wait a minute. In 2005 Macy's acquired May Co. for $11.5 billion. Yes that's billion with a B. A part of the acquisition added 5oo stores to the 350 Macy's already had. Now if you added 10 stores for every state in the country wouldn't you think about shutting a few down where there might be overlap? And maybe wouldn't you do it in 2006 or 2007 or 2008? Ten stores out of 850 is less than a 1.5% cut back. Absolutely meaningless when looking at the big picture and anticipated consumer frugality.