Holiday Slump Spurs Retail Rethink

Dismal holiday results from retailers are prompting executives across the industry to shrink or adapt their stores, and rethink the cost of growing their online operations. Declining shopper traffic is prompting companies such as Macy’s Inc. and Wal-Mart Stores Inc. to close low-performing locations this year. The shift to online shopping also is vexing chains: Nordstrom Inc. said it would curtail technology spending after profits fell 29% last quarter, in part because of costs related to Web sales. In his annual letter to shareholders, Sears CEO Edward Lampert noted Thursday that 2015 was the year when the impact from e-commerce and other factors reshaping the industry “spread more broadly to retailers that had previously proven to be relatively immune to such shifts,” including Wal-Mart, Nordstrom and Macy’s. Read more at Nasdaq.