Macy’s closes 7 more points and reduce 5 thousand employees

Macy’s closes 7 more points and reduce 5 thousand employees

The oldest retailer in the United States Macy’s has announced the closure of 7 stores. Then followed and information on downsizing. As reported by USAToday Blair Rosenberg, a representative of the company, reduction in waiting up to 5 thousand employees.

Macy’s will close the following outlets:

Macy’s closes 7 more points and reduce 5 thousand employees

  • Miami (downtown), Miami, Florida.
  • The Oaks, Gainesville, Florida.
  • Novato (Furniture), Novato, California.
  • Shopping at Honey Creek Mall, Terre Haute, Indiana.
  • Birchwood Mall, Fort Gratiot township, Michigan.
  • Fountain Place, Cincinnati, Ohio.
  • Burlington (Center), Burlington, Vermont.

In addition, the company said that at the beginning of the 2018 year, it will close another 11 stores (it was previously announced plans to close more than 100 stores in 2016 and 2017 ) in an attempt to increase efficiency and allocate resources to support its digital growth strategy. Including shops, announced today, Macy’s closed 124 points with 2015 .

It’s part of an overall plan for technologizing and digitalization of the network. The firm expects to save about 300 million dollars from the closure of the stores, staff reductions and optimization of other functions.

«Looking to 2018, we are focused on continuous improvement and will take the necessary steps to move faster, perform tasks more effectively and allocate resources for investment in growth,» — said in his statement, the CEO of Macy’s Jeff Kennett.

A huge area of shops and the traditional model, the basic problems that the company is struggling. The same aspects of the modern market, thanks to the success of the company Amazon and other factors that affect shifts in the direction of intensive development also giants like Walmart or network J. C. Penney. Recall that Walmart is working on concept stores of the future.

According to footwearnews, Macy’s expect that its comparable sales to fall 2.4 to 2.7%, while total comparable sales will be reduced by 2 and 2.3%.

It is expected that total sales will decrease by 3,6–3,9 percent in the 2017 fiscal year.

Excluding changes in the Federal tax legislation, Macy’s, Inc. expects profit for the full year will be in the range of 3.53 to 3,63 $. Considering changes, the estimated profit from stocks will be a bit more of 3.59–3.69 in $.

At the request of the company, the sales volume of the company’s products on the Internet has doubled. Perhaps this helped the company to maintain economic balance, despite the reduction in the number of sales outlets and other difficulties.