Fraser Lundie
Despite an improving domestic economy, the US retail industry is under pressure. Changing consumer preferences, falling tourist numbers, unseasonal weather and the rise of fashion e-retailers are among the reasons why US retailers – and department stores in particular – are struggling. Fraser Lundie, Co-Head of Credit, and Ilana Elbim, Credit Analyst at Hermes Investment Management, explain how they responded to this structural change with a defensive trade involving Macy’s, whose flawed strategy for reviving sales has proved one of the least effective in the sector.