So far, mall-based departmental giant companies are not seeing any improvement in their economic position since the majority of these companies reported a decline in sales. Mall based departmental store companies Kohl, Victoria’s Secret and JC Penney have reported a meager amount of sales. All of these companies recently released their holiday seasons’ performance report, and it shows nothing but the negative side of this industry. As compared to an online giant company like Amazon, eBay departmental stores are not able to make any profit.
Retail companies have seen a slight improvement in their sales figures buy offering the same level of discount as Amazon also giving fast deliveries of items. T.J. Maxx stores are the perfect example of providing too much concession to sustain in the market. However, things are quite the reverse when it comes to departmental stores based companies. Mall based companies are either too slow or not offering any discounts to customers.
Online giant companies are famous for bearing losses because they can give away a considerable amount of discounted items. But, even after so many failures, departmental store companies are not making any significant changes to their traditional approach of getting customers. J.C. Penney reported a decline of more than 7.5% in sales as compared to the previous year’s holiday season. The company had already gone through a reinvention plan in 2012, and they are still troubling to improve financial figures. Kohl’s reported a small decline of 0.2% in sales for this season despite spending a considerable amount of money on advertising and new initiatives. As a result of such lousy reporting for the holiday season, both JCPenney and Kohl’s shares were down by 10% during intraday trading.