December wrapped up 2024 on a high note, with record holiday sales fueled by strong e-commerce growth and strategic promotions. Yet major players like Macy’s faced ongoing pressures, while JC Penney, PVH Corp., and Nike navigated mixed results. Meanwhile, Nordstrom’s privatization plans and Saks’s acquisition of Neiman Marcus signal noteworthy realignments in the luxury space, underscoring a dynamic close to the year.
Retailers ushered in the holiday season with a strong start, as November sales exceeded expectations, buoyed by a 6.5% surge in e-commerce. The holiday shopping kickoff benefited from increased in-store and mall traffic, robust online activity, and deep discounts that, combined with easing inflation, created a record-setting start to Holiday 2025. Among the promotional standouts, Kohl’s generated buzz with its “free merch” campaign, randomly gifting the contents of selected shoppers’ carts on three key Saturdays. Overall, holiday sales ended on a positive note, surpassing last year’s results—a testament to the pivotal role of strategic promotions.
Macy’s, however, continued to grapple with significant challenges. Another activist investor is pressuring the department store to revamp its business structure in a bid to boost its share price. The retailer is eager to leave behind the turbulence of 2024, which included a $150 million accounting error and lackluster financial performance. Macy’s remains optimistic about its smaller store formats, which have shown promise in a tough retail environment.
JC Penney, meanwhile, reported declining sales but pointed to stabilizing profits as part of its ongoing turnaround strategy. While the focus on profitability is a positive sign, without a solution to its persistent sales slump, the long-term outlook remains murky.
PVH Corp. reported a tough Q3, with earnings and revenue missing expectations. However, leadership expressed confidence in the company’s PVH+ strategy, which they believe is working as intended. Conversely, Birkenstock capped off 2024 with stellar results, outperforming both internal and analyst projections. The company plans to expand its wholesale partnerships and increase its door count by 50% in 2025.
Nike adopted an aggressive pricing strategy to clear excess inventory, a move that also puts pressure on its retail partners. While the approach aims to streamline operations, it has raised concerns about the broader impact on retailer margins.
On the business development front, Nordstrom announced plans to go private, with the Nordstrom family teaming up with Liverpool to acquire the retailer. Also, Saks finalized its purchase of Neiman Marcus, solidifying its position in the luxury retail sector.
Meanwhile, emerging players are making waves. American Giant has found a cost-effective way to manufacture T-shirts in the U.S. for Walmart and is expanding into hoodies in 2025. True Classic is also scaling up, rolling out its popular classic T-shirts in 460 Target stores as part of its wholesale growth strategy.