Macy's Turns to Costco Model to Spur Retail Turnaround

===========================CRITICAL HARD RULES (QWEN-SAFE)===========================

1. You MUST output the FULL ORIGINAL ARTICLE.
2. The ONLY allowed change is inserting ONE tag.
3. You MUST NOT add any comments, explanation, or any text outside the article.
4. You MUST NOT rewrite, reorder, delete, normalize, or alter ANY character.
5. You MUST NOT output the tag alone.
6. You MUST NOT place the tag at the beginning or at the end of the article.
7. The tag MUST be inserted inside a MIDDLE PARAGRAPH.

A “paragraph” = a block of text separated by one or more blank lines.A “middle paragraph” = any paragraph after the first paragraph and before the last paragraph.

If you break ANY rule → your output is INVALID.

===========================THE TAG (INSERT EXACTLY ONCE)===========================

Insert this exact structure:

Notes:• Replace MODEL_GENERATED_VALUE with the generated ticker.• Replace CATALOG_ID_VALUE with the matched catalog id.• Replace TIME_RANGE_VALUE with exactly one of: 0, 1, 2, 3, or 4.• DO NOT output any parentheses or explanations inside the tag.

The tag MUST be inserted at a natural boundary:• end of a sentence• or end of a line

Do NOT change any surrounding characters.

===========================HOW TO GENERATE THE ATTRIBUTES===========================

1. code (MODEL_GENERATED_VALUE)

Pick the single most relevant ticker found in the article.
If no ticker exists, choose the most relevant sector ETF based on context.If still unclear, default to SPY.

1.1 Crypto Rule

If the most relevant asset is a cryptocurrency:• Convert it to its USDT trading pair (e.g. BTC → BTCUSDT).• If the article uses the full name (e.g., “Bitcoin”), map it to the standard ticker first (Bitcoin → BTC → BTCUSDT).

This rule applies ONLY to crypto assets.Non-crypto tickers MUST stay unchanged.

2. id (CATALOG_ID_VALUE)

NEWS_BACKTEST may be:• a Python dict• a JSON string

Parse it if needed.

Choose ONE id from:data.newsBacktest[0].items[*].id

Selection MUST be based on semantic matching between:• ARTICLE text• items[*].details

If no strong match:• choose the item describing trend/momentum
If still unclear:• choose the FIRST item in the catalog

3. range (TIME_RANGE_VALUE)

Use a 5-year backtest window (timeRangeId="3") as the default.
Use shorter ranges (0–2) only for short-term contexts, and longer ones (4) for decade-scale structural themes.

===========================MANDATORY OUTPUT FORMAT===========================

You MUST output:✔ the original article✔ with the inserted tag inside a middle paragraph
✘ no explanation
✘ no extra text

===========================INPUTS===========================

CATALOG_JSON:{"status_code":0,"data":{"newsBacktest":[{"extension":"/","items":[{"id":"strategy_001","name":"Absolute Momentum","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: ROC(126) crosses above 0 at close. Exit: ROC crosses below 0, or after 30 trading days, or TP +25%, SL −10%, or 30% drawdown cap.","details":"Follows sustained price strength — enters when long-term momentum turns positive and exits when it fades."},{"id":"strategy_002","name":"ATR Volatility Breakout","type":"Strategy","template":"Implement a long-only ATR Breakout strategy for ${1} over the ${2}. Entry: Go long when today's True Range exceeds 1.5× the 20-day ATR and the close breaks above the previous 20-day high. Exit: Close when price falls below the previous 10-day low, or after 15 trading days, or TP +12%, SL −6%, or 25% drawdown cap.","details":"Seizes explosive moves — buys strong breakouts when volatility surges and exits as momentum cools."},{"id":"strategy_003","name":"Bollinger Bands","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: Close crosses above the lower Bollinger Band (20, 2). Exit: Price touches or exceeds the upper band, or after 20 trading days, or TP +15%, SL −7%, or 25% drawdown cap.","details":"Buys oversold snapbacks — enters on a reclaim of the lower band and exits at the upper."},{"id":"strategy_004","name":"Donchian Breakout","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: Close > 55-day high. Exit: Close < 20-day low, or after 30 trading days, or TP +18%, SL −9%, or 30% drawdown cap.","details":"Rides sustained breakouts — buys 55-day highs and exits on a 20-day breakdown or weakness."},{"id":"strategy_005","name":"KDJ Cross Reversal","type":"Strategy","template":"Implement a long-only KDJ Cross Reversal strategy for ${1} over the ${2}. Entry: Go long when %K(9,3,3) crosses above %D(9,3,3) and both are below 30 at close. Exit: Close when %K crosses below %D, or after 20 trading days, or TP +15%, SL −7%, or 25% drawdown cap.","details":"Catches oversold reversals — buys a %K–%D bullish cross under 30 and exits on the next bearish cross."},{"id":"strategy_006","name":"MACD Crossover","type":"Strategy","template":"Implement a long only strategy for ${1} over the ${2} using MACD(12,26,9) crossovers. Entry: Go long after bullish crossover confirmed at close. Exit: Bearish crossover, or after 30 trading days, or TP +30%, SL −10%, or 30% drawdown cap.","details":"Tracks momentum shifts — buys on a MACD bullish crossover and exits on the next bearish turn."},{"id":"strategy_007","name":"RSI Oversold","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: RSI crosses above 30 at close. Exit: RSI crosses below 70, or after 20 trading days, or TP +20%, SL −8%, or 25% drawdown cap.","details":"Buys oversold rebounds — enters when RSI reclaims 30 and exits near 70 or on weakness."},{"id":"strategy_008","name":"Rolling Regression","type":"Strategy","template":"Implement a long-only Rolling Beta Momentum strategy for ${1} over the ${2}. Entry: The regression beta of past 60 daily returns on time (trend slope) > 0. Exit: Beta < 0, or after 20 trading days, or TP +20%, SL −8%.","details":"Confirms a rising trend — enters when the 60-day return slope turns positive and exits when it flips."},{"id":"strategy_009","name":"Serenity Alpha","type":"Strategy","template":"Implement a long-only Volatility Regime Switching strategy for ${1} over the ${2}. Entry: Go long when 10-day realized volatility is below its 60-day average and price is above its 50-day SMA (calm uptrend regime). Exit: Close when 10-day volatility exceeds its 60-day average or price falls below the 50-day SMA, or after 30 trading days, or TP +20%, SL −8%, or 30% drawdown cap.","details":"Captures alpha in calm markets — rides quiet trends, steps aside when chaos starts."},{"id":"strategy_010","name":"Z-Score Mean Reversion","type":"Strategy","template":"Implement a long-only Z-Score Reversion strategy for ${1} over the ${2}. Entry: Go long when Z = (Close - SMA(20)) / StdDev(20) ≤ -2 at close. Exit: When Z ≥ 0, or after 10 trading days, or TP +8%, SL −4%, or 25% drawdown cap.","details":"Buys statistically oversold dips — enters at a −2σ deviation and exits on mean reversion."},{"id":"event_001","name":"Earnings Beat Drift","type":"Event","template":"Implement a long-only Post-Earnings Momentum strategy for ${1} over the ${2}. Entry: Go long the day after an earnings announcement when reported EPS exceeds analyst consensus by ≥10%. Exit: After 20 trading days, or TP +10%, SL −5%, or 30% drawdown cap.","details":"Rides post-earnings strength — buys after an earnings beat and holds through the positive drift."},{"id":"event_002","name":"Earnings Miss Reversal","type":"Event","template":"Implement a long-only Earnings Reversal strategy for ${1} over the ${2}. Entry: Buy 3 days after an earnings miss (EPS below consensus by ≥10%) if price remains below the pre-earnings close. Exit: After 10 trading days, or TP +8%, SL −4%, or 25% drawdown cap.","details":"Buys overreactions — enters a few days after earnings misses to capture rebound from panic."},{"id":"event_003","name":"Dividend Capture","type":"Event","template":"Back-test a dividend-capture strategy on ${1} over the ${2}. Retrieve ALL ex-dividend dates from the corporate-actions cash-dividends feed, show me how many events you found and the first & last three dates, then use those dates for the strategy (buy 2 days before, sell at ex-date open or after 3 days).","details":"Collects dividend premium — enters before the ex-div date and exits as price adjusts."}],"id":2417,"data_id":700,"data_code":"newsBacktest","priority":50,"key":"newsBacktest"}]},"status_msg":"ok"}
ARTICLE:Macy's CEO Jeff Gennette is increasingly turning to Costco for inspiration as the department store chain seeks to stabilize its business and drive a turnaround. The move reflects a broader strategic shift in the retail sector, where traditional department stores are re-evaluating their value propositions in the face of rising consumer expectations and competitive pressures. Gennette has [cited Costco's membership model](https://www.reuters.com/sustainability/sustainable-finance-reporting/activist-barington-launches-new-proxy-fight-matthews-sources-say-2025-12-07/) and cost discipline as key areas for potential adaptation.
Recent earnings reports from other retailers highlight the ongoing challenges in the sector. [Dave & Buster's reported a revenue dip](https://www.investing.com/news/transcripts/earnings-call-transcript-dave--busters-q3-2025-sees-revenue-dip-stock-steady-93CH-4399759) in Q3 2025 but maintained a steady stock price amid progress on capital efficiency and store growth. Meanwhile, Caleres and Academy Sports have also seen mixed results, with the latter [navigating uncertainty](https://www.investing.com/news/transcripts/earnings-call-transcript-academy-sports-beats-eps-forecast-in-q3-2025-93CH-4399058) over new store development and tariff impacts.

The retail sector remains in a state of flux, with companies like Caleres working through the integration of high-profile brands such as Stuart Weitzman while managing the fallout from operational shifts. These developments underscore the fragility of profit margins and the need for strategic clarity in a rapidly evolving market.

How Markets Reacted

Investors have responded cautiously to the shifting dynamics. While some companies, like The Merger Fund, have benefited from deal completions and SPAC activity, others face headwinds. The Fund reported a 1.92% return in Q3 2025, driven in part by the Chevron-Hess and Kellanova-Mars deals. However, retail stocks more broadly have remained under pressure, with banks lowering loan rates for retail segments in response to the Reserve Bank of India's rate cut.

For Macy's, the shift toward Costco's model is being framed as a potential solution to declining sales and profitability. The company is exploring ways to streamline operations while improving customer loyalty and value offerings. Gennette has emphasized the importance of learning from companies that have successfully navigated similar challenges.

What This Means for Investors

The search for new models is particularly urgent for retailers facing stagnant demand and rising costs. For investors, the focus has shifted from short-term earnings to long-term sustainability and operational efficiency. Companies like Dave & Buster's and Academy Sports have both highlighted the need for disciplined capital management, with the former investing heavily in store remodels and the latter adjusting its store growth strategy.

The broader industry is also watching closely for signs of stabilization. Activist investors like Barington have taken a more aggressive stance, pushing for governance changes at companies including Macy's. This pressure underscores the high stakes for retailers in maintaining investor confidence.

For now, the retail sector remains a mix of optimism and caution. While new store growth and international expansion offer potential upside, companies must also contend with regulatory hurdles and macroeconomic uncertainties as highlighted in earnings calls. As the year closes, market participants will be closely watching how these strategic shifts translate into tangible results.

Risks to the Outlook

Despite the optimism surrounding new strategies and market adaptations, several risks remain. Tariffs, supply chain issues, and shifting consumer preferences continue to pose challenges for companies like Academy Sports and Caleres. Additionally, the broader political and economic landscape introduces volatility, especially with developments like the Trump administration's military plans in the Caribbean adding uncertainty to the global environment as reported by NBC News.

Retailers must also manage the delicate balance between growth and profitability. While expansion opportunities in international markets and new store development are promising, they come with their own operational and financial complexities. For Macy's, the path forward will depend on its ability to replicate the success of companies like Costco while maintaining its own brand identity.