Macy's reported absolutely dismal quarterly results today, same store sales down more than 9% while the overall retail number was down 4%. Macy's is one of the few large advertisers still running significant amounts of revenue in ROP ad dollars. A bad quarter only means that upcoming ad budgets will be cut further, and most of those cuts are likely to be in newspaper advertising. If your local MNI paper doesn't have Macy's ads on page 3 or the back page, cuts are likely to be higher.
With GM and Chrysler announcing the dealership ranks being trimmed by nearly 3,000 stores in the next 2 years, newspapers will have even less large dollar advertisers running ads in their classified pages. The remaining dealers will be able to gain market share without having to spend more in ad dollars to do it. Most of the closing stores will quickly liquidate inventory through dealer auctions rather than out of business sales.
These are just a few more reasons why I think MNI is destined for bankruptcy court. The top line continues to shrink and there appears to be no company wide plan on how to replace the revenue that has gushed out of the building.
Macy's has to be the largest advertiser in the Sacramento Bee. Today's Bee has a full-page Macy's ad, a 3/4 page Macy's ad, and a half-page Macy's ad.