Jim Cramer: Macy's Leaves Them in the Dust
NEW YORK (Real Money) -- Maybe Macy's
You have to shake your head at first when you examine the Macy's numbers, because they, alas, seem too good to be true. That's especially given the odd contrast of Bed Bath & Beyond
However, when you have sat down with CEO Terry Lundgren as many times as I have done in the last few years, you know that Lundgren saw a lot more changes coming to retail than just about anyone else did -- including Bed Bath, for that matter.
Lundgren, who is one of my Bankable 21 -- the 21 CEOs in Get Rich Carefully that I say you can bank on to win for you -- understood something crucial. Namely, if Macy's was going to be a successful and prevail as a 21st-century retailer, it was going to have to change radically.
That's why he looked at the universe of stores and decided that Macy's could go national on purchasing clout from suppliers, but that it needed to stay local when it came to customers' needs. I think a lot of the skeptical investor class didn't believe Lundgren when he stressed his "My Macy's" initiative, which entailed bolstering local sales by having the amalgam of department stores atomize into the local roots that had once predominated.
Remember, Macy's was initially cobbled together in an almost automaton way: A bunch of local retailers were gathered under one nationwide roof. That was an excellent business decision when it came to the ability to wrangle with such names as VF Corp