Donald Trump truly has the Midas touch…or reverse Midas touch is you are a company/politician/reporter who angers him and his base. If you recall last year after Trump announced his run for presidency, Macy’s took offense to his stand on the border and illegal immigration. I can’t imagine why they would be offended by wanting to save American citizen’s lives by preventing drugs from poring in, and criminals, but it was enough for Macy’s to pull Trump’s clothing line from their stores.
A year later they are suffering for it. I’m sure there are other factors involved, of course, but the irony is still obvious. Although I doubt any Macy’s board members are sitting around the conference room saying, “Gee, maybe we shouldn’t have been so quick to pull the Trump brand out of our stores.” Well, they should be asking that very question.
Corporate America is learning a lesson: Don’t cross Donald Trump.
One year ago, Trump upended American politics when he declared he was a candidate for president.
Trump fired back, declaring the company supports illegal immigration. His supporters even shredded their Macy’s credit cards and tens of thousands called to complain about the company’s cave to political correctness.
Trump himself also called for a boycott of the company.
Those who believe in tight border security, stopping illegal immigration & SMART trade deals w/other countries should boycott @Macys.
— Donald J. Trump (@realDonaldTrump) July 1, 2015
From the vantage of June 2016, it appears Trump has had the last laugh.
The onetime reality television star is now the presumptive Republican candidate for president of the United States. Meanwhile, Macy’s stock price has plummeted.
When Trump first called for the boycott on July 1, 2015, Macy’s stock price stood at $67.82 per share. In less than a year, the stock has lost more than half its value, now standing at just over $31 a share.
And the company’s problems go beyond its stock price.
It reportedly is suffering a year-over-year operating income decline of 40 percent, a 4.4 percent drop in revenue, and a comparable-sales decline of 3.2 percent. Experts claim the company’s decline is as dire as anything suffered during the economic crisis of 2009.
And last week, Terry Lundgren, who has been CEO for 13 years, announced he will step down from the top job as Macy’s struggles to adjust.
His replacement as CEO, Jeff Gennette, is the current president of the company, leading to accusations from some critics that Macy’s is too cautious to make the kinds of adjustments it needs recover from its current decline.
The company also is struggling to compete with online retailer Amazon.com, which now controls 41.2 percent of the e-commerce market compared to Macy’s 1.5 percent.
Not coincidentally, Trump’s “Signature Collection” clothing line is now available for sale through Amazon.
Amazon itself has been pressured by some shareholders to dump Trump’s products because hosting the candidate’s clothing line “poses a risk to Amazon’s reputation.”
Even Amazon CEO Jeff Bezos has been publicly feuding with Trump through The Washington Post, which he also owns. The Post has an army of 20 staffersordered to dig up dirt on Trump in preparation for a book. Trump has accused Bezos of buying the Post to increase his political influence and effectively banned the newspaper from covering his rallies and events by revoking its press credentials.
However, Amazon has not dumped Trump’s products.
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Macy’s aims to respond to Amazon’s online challenge by renovating its stores and allowing customers to “experience” its products with larger display areas. The company recently unveiled a store in Columbus, Ohio, designed to serve as a “prototype” for the entire chain.
However, Amazon is not sitting still, unrolling new online content designed to facilitate its continuing takeover of the fashion market.
As for Trump’s business empire, his presidential run has proved a mixed blessing. A number of organizations have declared their intention to target his economic interests, including the Hispanic National Bar Association, an activist group linked to Judge Gonazalo Curiel. Curiel will preside in the upcoming fraud case against Trump University.
Even heads of states are pressuring Trump’s bottom line. Turkish President Recep Tayyip Erdogan recently called for Trump Towers Istanbul to drop the tycoon’s name. A new chain of properties owned by Trump Hotels will also uncharacteristically avoid using the “Trump” name. A recent survey found a majority of respondents were less likely to stay in a hotel they knew was owned by Trump, because of his political views.
On the other hand, the presidential campaign has also proven invaluable exposure for the Trump brand.
Even during the primary campaign, Trump found time to host a press conference at the Old Post Office in Washington, D.C., which Trump is turning into Trump International Hotel. And Trump recently held a press conference at the Trump Turnberry golf resort in Scotland, after a renovation personally overseen by the candidate’s son Eric.