Here's the stunning quote that you need to pay attention to:
- Starboard chief Jeff Smith estimated the value of Macy's real estate at $21 billion last month -- and that's almost exactly what the entire company's market cap is today.
Do you understand what that means?
- Their brand is worth $21,000,000,000.
- The buildings they own are worth $21,000,000,000.
- The merchandise they sell and their omnichannel strategy and their creative/marketing strategy and their customer service strategy is worth $0.
For the past five years, research brands, trade journalists, consultants, and vendors demanded that you adopt an omnichannel strategy or your business would be "dead". Repeatedly, they use Macy's as the poster child for success ... so much so that Macy's, in their SEC filings, proclaim that they are "America's Omnichannel Store".
Meanwhile, sales (which had been flat or largely tepid for years) are now in decline. Sales are declining. Declining. The value of everything they do is $0. The value of their real estate holdings represents 100% of the value of the company.
Now, can they reverse this trend? Absolutely! But look where the strategy led them. Are you following the omnichannel playbook? Where is it leading you?
Focus on merchandise excellence.
Focus on telling a spectacular story that customers want to learn more about.
Focus on entertaining your customer base. It's not good to bore customers.
Focus on aligning pricing tactics with your core audience.
Focus on finding new customers - never take your foot off of the new customer acquisition gas pedal.
Focus less on omnichannel strategies that benefit research brands, trade journalists, consultants and vendors.
Do what is right for your business.