Macy's has notified employees at roughly 45 of its department stores that the locations will shut down in the middle of this year.

Continue Reading Below

TickerSecurityLastChangeChange %MMACY’S INC.11.39+0.17+1.52%Powered by

The move is part of a plan announced by Macy's in February, before the coronavirus pandemic began, to close 125 locations by 2023. At the time, Macy's said it would also cut roughly 2,000 corporate jobs and close several offices, including one of its headquarters.

"As previously announced, Macy’s, Inc. is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls," a Macy's spokesperson told FOX Business in a statement. "To that end, we announced several store closures today that align to the guidance we provided in February 2020. These closures bring us closer to achieving the right mix of mall-based stores."

Macy's will provide a list of the store locations closing on its website on Wednesday.

CLICK HERE TO READ MORE ON FOX BUSINESS

The announcement comes after Macy's said in September that the retailer would be testing its luck with smaller stores that are away from underperforming malls. Other financial recovery plans Macy is undertaking include strengthening customer relationships and loyalty programs, curating quality fashion and accelerating digital growth. Macy's also said it plans on optimizing its store portfolio and resetting its cost base as ways to conserve cash.

In June, Macy’s Inc. dodged bankruptcy after securing around $4.5 billion in financing. However, the retailer said it would lay off 3,900 employees as the pandemic hammered sales. The move sparked criticism after SEC filings revealed the company's top executives received $9 million in equity bonuses just weeks after the layoff announcement.

Macy's losses narrowed to $91 million in its latest quarter, compared to a $431 million loss in the second quarter of 2020 and a $3.58 billion loss in the first quarter of 2020, as its digital business delivered strong growth and sales in its stores continue to recover from COVID-19-related closures. The department store chain reported a quarterly same-store sales decline of more than 20%, as consumers cut back their spending on clothes and accessories during the pandemic.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The retailer currently operates 544 of its namesake department stores, along with 34 Bloomingdale’s locations, 19 Bloomingdale’s outlets and 166 Bluemercury shops, according to its website.

Source Link:
https://www.foxbusiness.com/markets/macys-closing-45-more-stores

[]

Comments

comments

Advertisement