Macy&#39 Messi S Cancelling 130 Thousand People

April 2020, the latest news: Recently, the US retail chain giant Messi (Macy's) suddenly announced that the company will lay off about 130 thousand retail terminal business personnel. You know, Messi department store has temporarily closed all retail stores in the United States. At its peak, the company's market capitalization of $20 billion has now evaporated more than 90%, and its market capitalization is less than $2 billion before the deadline. What happened to the old US retail giant?

Statistics show that Messi's department store has been established for 162 years and has grown into a top grade department store in the United States after hundreds of years of development. Its main business is clothing, shoes and hats and family decorations, and has won a reputation through quality service.

Back in 1850s, a whale named Roland Haas Messi opened a shop in Manhattan, New York, and was named after his name. It only received $10 on business day. However, when Roland worked hard, the business revenue of the store exceeded $eighty thousand that year, and it has been growing rapidly for several years, making him a department store baron.

Although Messi's department store was founded by Loran, it developed under the leadership of Nathan Strauss. Nathan was born in Germany and later moved to the United States with his family. Because of his poor family, he began to work hard at the age of 14, started from odd jobs, and worked for more than 20 years to familiarise him with retail sales. He also knows well how the market develops and changes. In 1890s, Nathan, an entrepreneur, took Messi's department store and decided to turn the company into a first-class department store in the United States and even in the world.

After serious market research, Nathan thought that the department store industry in the United States was already a buyer's market. If we want to stand out in the competitive industry, we must take the position of the customer to consider the problem, so we adopted the service oriented approach. With this strategy, Messi department stores quickly won the consumer's love, and at the same time set up a first-class brand image in the hearts of customers.

Most large enterprises will adopt M & a strategy in order to seek rapid development, and so does Messi general merchandise. According to our understanding, after setting up a brand image, the company has completed its first expansion in the us through several M & A. In the 70s and 80s of last century, it became the world's leading department store retailer. At that time, WAL-MART was only a regional department store.

Unfortunately, the good news is not long. With the rapid rise of new formats such as supermarkets, chain stores and storage member shops, it has a great impact on the department store market. Under this trend, WAL-MART has grown rapidly to become the leading retailer in the US. But Messi stores lost the opportunity to get involved in the new format, gradually declined in the fierce competition, declared bankruptcy in 90s, and then was caught in the United States Department store.

After entering the new century, by the impact of the electricity supplier, Messi department store's performance has not improved. But relying on the acquisition of department stores in May, greatly increased the scale of its own stores, in one fell swoop led to the simultaneous rise in revenue and market value, and handed out a beautiful transcript, the company's market value once rushed to $24 billion.

According to media analysis, Messi's department store has always been looking for growth points through mergers and acquisitions in the development process, but in the process, it has not broadened its own channels, nor has it actively allocated other formats. Such a development mode makes it difficult to achieve great breakthroughs in performance and even decline. In recent years, in order to reverse the decline, the company has taken the practice of dismissing employees and shutting down stores. Judging from the current market, its outlook is still not optimistic.