Macy’s, Inc. (M), J.C. Penney Company, Inc. (JCP), Nordstrom, Inc. (JWN): Who Wins?

What’s next for Macy’s?
Macy’s is on the way, and investors should be happy with its current position. The company has had some help from the weakness of competitors — read: J.C. Penney Company, Inc. (NYSE:JCP) — but management has said that that support has been minimal. Macy’s is basically doing it on its own, and it’s doing it well.

For the rest of 2013, be on the lookout for similar comparable-store gains. Macy’s has forecast 3.5% for the full year, but I wouldn’t be surprised by anything up to 4%. Investors should also keep an eye on the new brands that Macy’s is launching this year, as those lines will give customers new reasons to visit the stores.

As a final note, Macy’s opened just one store in the first quarter, and expansion is going to continue at a very slow rate. I’m excited about management’s outlook on store growth, actually, especially given a comment from CFO Karen Hoguet at an investment conference earlier this year: “Omnichannel changes [the need to build new stores to grow], and we’re able to grow significantly more than any new store would add, and without the capital.” If Macy’s can deliver on that idea over the next few years, then the company should be able to push its margins up and deliver even more to investors.

The article Can This Retailer Win the Department Store Battle? originally appeared on Fool.com.

Fool contributor Andrew Marder and The Motley Fool have no position in any of the stocks mentioned.

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