Macy's Announces New Store Closures, Job Cuts
Macy's is planning 5,000 job cuts, including the closure of seven previously unidentified stores and other cuts at remaining locations, as it seeks stability in a tumultuous climate for physical retail. The retailer's cost reductions come after its holiday sales in stores open at least a year rose 1.1 percent. The moves are part of a plan announced in August 2016 to close 100 stores. Altogether, Macy's has now revealed 81 of the 100 locations. Net job cuts, including the closures and reductions at remaining locations, will total about 5,000, Macy's spokesman Blair Rosenberg said in an email.
Total Retail's Take: New year, same story for Macy's. The department store chain is implementing a plan to reduce its physical store footprint and generate more of its business digitally. Unfortunately, that means store closures, and the subsequent job losses that come with such actions. However, not all the news coming from Macy's is bleak. The retailer did post a same-store sales gain of 1.1 percent during the holidays, and e-commerce sales increased double digits year-over-year. That's the blueprint for a successful future for Macy's — fewer but more profitable stores, and a thriving digital business. The difficult part is having to close stores and cut jobs to get to that point.