Macy's to close 125 stores, cut more than 2,000 jobs

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEC0Q1B5_M.jpg
2/2 © Reuters. People wait to enter Macy's Herald Square ahead of early opening for the Black Friday sales in Manhattan, New York City© Reuters. People wait to enter Macy’s Herald Square ahead of early opening for the Black Friday sales in Manhattan, New York City 2/2

(Reuters) – Macy’s Inc (N:) said on Tuesday it plans to close 125 of its least productive stores over the next three years and cut more than 2,000 corporate jobs as a part of its cost savings effort.

The company said it would close stores in lower tier malls, and explore new off-mall formats, as it looks to tackle plummeting mall traffic in the United States.

The department store chain, which has been struggling to boost store traffic as consumers opt for online shopping, has closed more than 100 stores since 2015 and cut thousands of jobs.

“We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams,” Chief Executive Officer Jeff Gennette said.

The to-be-closed 125 stores currently account for about $1.4 billion in annual sales, the company said.

It also said it expects annual gross cost savings of $1.5 billion by 2022, with $600 million expected in 2020.

It forecast full-year net sales to be between $23.6 billion and $23.9 billion, below analysts’ average estimate of $24.36 billion, according to IBES data from Refinitiv.

The company will host its investor say on Wednesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment