>> It's such a hard time to be a department store retailer right now, that even the best is having trouble righting the ship. I'm Conway Gittens in New York. Macy's announcing Wednesday sales fell for the fifth straight quarter. The numbers were even worse than the dire predictions Macy's gave just a few weeks ago.
>> Jharonne Martis is the Director of Consumer Research at Thomson Reuters.>> So Macy's used to be the strongest department store among all of them, and the fact that they are posting such weak numbers today is very worrisome. It's a clear indicator that the department stores might actually be entering then near death unless they change things around.
>> There are some estimates out there that this Macy's flagship New York City location, long a tourist destination, is responsible for as much as 20% of company wide sales. But, there are two bigger problems, merchandise and Millennials.>> Merchandise that they have is for a different decade. They have mainly Tommy Hilfiger, Calvin Klein.
And these designers used to be an all-American luxury designers that because of mass production no longer resonates with Millennials. Millennials want different fashions.>> And Macy's is beset with other challenges, foot traffic overall is down. Price-conscious consumers are finding better bargains at discounters like TJ Maxx, and some shoppers are skipping the shops altogether by buying more online.
Macy's slashed its full-year outlook as efforts to boost sales, like sprucing up stores, freshening up product lines, and investing in Macys.com, fail to stop the bleeding. Wednesday's stock plunge putting sales of Macy's at four-year lows and dragging the entire retail sector along with it.