Macy's Crunch

I heard on Tuesday, Feb. 3rd, that 5,100 employees at Macy's are on the chopping block due to slower sales and less profitability.

The United States has become a conglomerate nation. Companies who saw competition as a way to add profit to their bottom line by purchasing them.

In the 1980's Companies were not just buying their competition, or a product that would increase their market share. They bought companies that were not part of their Industry. Quaker Oats bought Brookstone, Eyelab and Jos. A. Bank Clothiers. They later sold them. Avon Products bought Tiffany, Mallenkuot Chemical and Foster Labs. Sara Lee bought Electrolux, then spun it off.

As we continue to go through the economic slowdown, some companies who cannot sustain the expenses that increased during the boom years in the 1990's (mostly the stock price, if the company was public) will be open to Raiders who will leverage the brand to create cash flow and profit.