Stocks That Will Hurt Your Retirement: Macy’s (M)
Macy’s Inc (NYSE:M), after the beating it has taken of late, might actually be a decent short-term trade. But I wouldn’t want to bet my retirement portfolio on it.
Macy’s, along with several other department stores, had a lousy holiday shopping season — and this despite American shoppers eagerly opening their wallets in 2016.
The issue is that Americans are doing more and more of their shopping online these days, benefitting the likes of Amazon.com, Inc. (NASDAQ:AMZN) and its online peers. Brick-and-mortar retailers in general have suffered, and big department stores like Macy’s have suffered the worst.
I don’t expect department stores to collectively go out of business. After a period of consolidation, they will find their new place in a retail market in which the primary role of a brick-and-mortar store is to act as a showroom of sorts. But after the dust settles, I’d recommend steering clear of department stores, at least with your retirement portfolio.