Macy’s shares sank as much as 13 per cent on Wednesday, dragging some of the biggest names in American retail down with it, as weak earnings and Fitch’s decision to cut Gap’s credit rating to junk underscored the struggle of many in the sector to adapt to the demands of a younger generation. Same-store-sales, a key indicator of demand, at Macy’s slumped 5.6 per cent in the first quarter, the company said,

cutting its forecast for the year to a drop of between 3-4 per cent from an earlier estimate of 1 per cent. The results for the company, in which David Einhorn’s Greenlight Capital has acquired an undisclosed stake, signalled that the efforts Macy’s is making to lure back customers with an off-price chain, a cosmetics chain to rival Sephora and Ulta, and investments in ecommerce are not yet taking hold. READ MORE