Macy's And JC Penney Earnings Offer Evidence Of The Stall At The Mall; Here's How They Can Get On Track

. Given the structural issues facing mall-based retailers, as well as the broader shift to online shopping, we often jump to the conclusion that brands like Macy's and JC Penney can. This is fundamentally wrong and, in most cases, ultimately destructive. It also belies the fact that plenty of"traditional" retailers have managed to thrive by opening stores and foregoing massive cost-cutting.

In the next year or two, things are likely to remain especially noisy as the long overdue correction in commercial real estate settles out and the weakest competitors make their way to the retail graveyard. And even if that were not true, both Macy's and JC Penney face significant structural headwinds as well as daunting operating challenges making their way out of the boring middle—although, to be fair, Macy's is definitely further along.

Despite the noise, from where I sit, one thing is clear: Neither brand will cost-cut or store-close their way to prosperity. If revenues don't start to consistently grow faster than industry averages , then both chains will continue to lose relative customer relevance, and a downward spiral is likely inevitable.

it's definitely doable

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