US department store giant Macy’s has closed 100 stores. That is 14% of their total stores.

How many stores would other brands have to close to achieve 2006 level of sales per square foot? JC Penney’s would have to close 31% of its stores (that’s 320) and Sears would need to close 43% (300 stores).

What is happening here? Amazon. Their apparel business is taking off.

As stores close, brands are reacting. Coach is pulling its products from 250 low value department stores as part of its move to restore its association with luxury.

If Nike and Rolex and Samsung want to be perceived as luxury brands they have to control more of their distribution. And that is going to hurt department stores even more.

Posted in: Infographic of the day