Despite its reputation as a leading department store, Macy's has struggled to establish a significant international footprint. Its operations are heavily concentrated in the United States, with limited expansion into global markets. In some countries, Macy's presence is limited to just one or two stores, limiting its ability to compete with other retail giants that have embraced more aggressive global expansion strategies.
This limited reach limits the potential for sales growth and weakens brand recognition beyond the pharmacies email list U.S. borders. As competitors invest in capturing multiple markets, Macy's risks being seen as a regional player rather than a global powerhouse, potentially hurting its long-term growth prospects.
2. High operational costs of physical stores
Operating many physical stores involves significant fixed costs, including rent, utilities and employee salaries. These costs can put significant pressure on profit margins, especially in a competitive retail environment where efficiency is key.