Retail Set Up Ahead of Macy's and WMT Earnings Taking In Tariff Threat

The video discusses the financial challenges faced by Macy's, including a significant stock decline and difficulties in adapting to online spending trends. Analysts suggest Macy's may be undervalued. In contrast, Walmart shows consistent sales growth and is implementing strategies to compete with Amazon, such as offering free next-day shipping. However, these strategies impact profit margins. The video also covers the potential effects of increased tariffs on retail, with larger retailers like Walmart and Target better positioned to absorb costs. Retail CEOs express concerns over trade policies.

What was one of the main reasons for Macy's stock decline?

• A successful holiday quarter

• A shift to more in-store spending

• A weaker than expected holiday quarter

• An increase in brick-and-mortar stores

What is Walmart's strategy to compete with Amazon?

• Reducing the number of physical stores

• Increasing prices on all products

• Offering free next-day shipping without a membership fee

• Focusing solely on in-store sales

What challenge does Walmart face with its online sales growth?

• Online sales are not growing

• Online sales are not yet profitable

• Online sales are only seasonal

• Online sales are decreasing margins

How might increased tariffs affect retailers?

• They will increase the cost of goods

• They will decrease the cost of goods

• They will only affect online retailers

• They will have no impact

What advantage do larger retailers have in dealing with tariffs?

• They can absorb costs due to their size

• They can increase tariffs on their own goods

• They can avoid tariffs altogether

• They can reduce their size