Kristin Bentz Thinks Macy's Needs To Close Stores

Macy's, Inc M shares are rebounding this week, but according to Kristin Bentz of The Talented Blonde, investors shouldn't be fooled. Macy's, she said on Tuesday's PreMarket Prep, is in deep trouble.

Even though she loves CEO Terry Lundgren, Bentz admitted there’s certan things that even he can’t fix.

"They’re trying to do everything. They acquired a cosmetics company...which I thought was strange. They went into off-price. They brought in Sunglass Hut. They're trying to do everything to fix it, and now they're closing stores, which is what they should have done a long time ago." 

Failing Digi-col Initiative

Bentz talked about what she called the "Digi-col" initiative, the combination of owning the digital and local spaces. Despite Macy's having one of the largest websites in the world, they're having a hard time marrying the two. "I'd be really cautious here. I think that there's much more room for weakness," she said. 

The only solution according to Bentz is to close stores. "I think they need to close a gazillion stores. It’s sad because they're such an amazing brand. They're doing all the right thinks and it's still not working."

Experiential Luxury

Bentz pointed to experiential luxury brands as the companies that could be the next big draw for the consumer retail sector. Travel companies, such as Airbnb and Uber, and service companies, such as DryBar, could be positioned to grow in the coming years.