Just what kind of an economy are we living in?
The contrasting fortunes of Macy’s, a one-time pillar of retail, and Nvidia, an artificial intelligence chipmaker that could become the most highly valued company ever, hint at the turbulent reality Americans inhabit.
Macy’s announced at the end of February that it will shutter 150 stores amid shrinking sales and revenue. A few business cycles earlier, Nvidia had become one of the first publicly traded companies to reach $2 trillion in market capitalization, as measured by the total value of its stock.
The 166-year-old retailer and the 30-year-old tech upstart represent distinct slices of the economy, but they encapsulate how different sectors are grappling with shifts that are reshaping how we shop, work and live.
While Nvidia is creating the chips that power AI, which enables tasks ranging from filling out a spreadsheet to the functioning of our smartphones, Macy’s is struggling to catch up to the shifting expectations of shoppers who want something different than the department store of the past.
AI “is one technology that impacts everyone from the CEO to the frontline workers,” says Muqsit Ashraf, global lead for Accenture Strategy, part of the global professional services company.
But the old-fashioned department store that sold shoppers a wide array of products, and which Macy’s once epitomized, is becoming less and less relevant.
“We’ve seen it with JCPenney, we’ve seen it with Sears,” says Zak Stambor, senior analyst…
