Macy's closes stores to reduce costs - here is where
The closures are part of a wider plan to improve the purchasing experience, said the company.
For those of us who always prefer to shop in person rather than online, the news of another series of closures is disappointing to say the least. This is particularly true when it comes to a brand like Macy's, which has been a name for confidence for generations. But like many others Department store managers , Macy's has been forced to change over time, especially since shopping centers are now considered relics of the past. The old pillar has actively closed locations in recent years, including a handle At the beginning of 2023. And now, Macy's is closing additional stores to reduce costs.
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Macy informed employees on closures and Other imminent changes In a memo sent on January 18, Wall Street's journal reported. According to "people familiar with the situation" and the memo, which was examined by the point of sale, Macy's decision was fueled by the need to save money and improve the purchasing experience client.
"Despite our strong and tangible progress in recent years, we remain under pressure." Jeff Gennette , CEO of Macy, and Tony Spring , The president and the CEO of Macy, wrote in the note, according to the Wsj . The leaders added that these decisions had been made after a year of research on consumers. The exact changes include adding automation to the supply chain, the outsourcing of certain roles and the reduction of management layers to make faster decisions, reported the point of sale. AE0FCC31AE342FD3A1346EBB1F342FCB
As other part of the plan, the company closes five stores in the United States, as well as two furniture sites that will be sold and moved.
The closures will affect four states: Virginia, California, Florida and Hawaii, according to the Wsj . Closing stores are the Macy's in Ballston Quarter in Arlington, Virginia; Macy's Bayfair Center in San Leandro, California; Macy's Sim Valley Town Center in Sim Valley, California; The place of the governor of Macy in Tallahassee, in Florida; And Macy's Kukui Grove Center in Lihue, Hawaii.
In a declaration at Better life , a spokesperson for Macy's, Inc. confirmed that the mattress and mattress gallery of Macy's South Hills would be integrated into the full location of Macy's South Hills. The place of the Boca Raton furniture and mattress gallery will also be sold "with a rental option until the middle of 2024."
"It is our intention to move our gallery of furniture and mattresses to a nearby location once the lease is expired, and our colleagues from Macy will be eligible for the transfer," added the spokesperson, noting that the employees of the 'South Hills Furniture location will also be eligible for transfer. "We will share updates when we finalize our plans. In the meantime, we are looking forward to continuing to serve our customers and the community of Boca Raton."
The spokesperson did not provide additional details on the closing of the stores.
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In addition to store closures, the company has announced its intention to dismiss 13% of corporate staff, or 2,350 positions, the Wsj reported. The memo noted that layoffs will take place on January 26.
"While we are preparing to deploy a new strategy to meet the needs of a consumer and a constantly evolving market, we have made the decision difficult to reduce our workforce by 3.5% to become a more rationalized company, said the spokesman Better life About layoffs.
Back in November 2023, there were problem signs For Macy's, the company declared a 7% drop in sales from one year to another during the third quarter. Brick and mortar and online sales have also decreased by 7%, and net income and income also dropped, according to a Press release describing income.
The performance, however, beat Wall Street's expectations, generating more income than expected analysts and invoicing forecasts for the drop in comparable store sales. Upon entering the holidays, the company also had a positive perspective.
"We have delivered results from high and upper background and scheduled for the third quarter and enter the holiday period in a healthy inventory position," Gennette said in the Novèdes press release. "Our portfolio of signage plates leads gift destinations through the value spectrum offering exclusive products. We have refined our assortment of gifts, simplified our promotions and improved our purchasing experience."
Macy's has not yet released figures from the holiday season. According to Wsj , the next report on results should be published in February.
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