Macy’s Inc is planning to close about 100 stores. Macy’s closures represent about 15 per cent of the company’s total number of department stores. After six quarters of falling sales, the US-based departmental store is trying to turn around its business.
The company has not yet announced which stores will close, but says the closings are to take place in early 2017. Since 2010, 90 Macy’s stores have closed, though 13 new ones opened.
Macy’s and other department stores such as Sears, JC Penney, including specialty retailers, see their sales and profits being gobbled by online retailers such as Amazon.com Inc and discount stores like TJX Cos Inc and shoppers seeking fresher retail concepts.
Consumers are also spending more on big-ticket items such as electronics and cars than they are on clothes, further pressuring sales at department stores.
During the second quarter, Macy’s sales fell 4 per cent, however, it was better than what analysts had expected and helped to send its shares and those of other department stores higher.
Analysts believe that shutting stores and other steps taken by Macy’s might help in recovering but some said there were still issues that need addressing.
After Macy’s closes all 100 stores, it will retain a physical footprint in 49 of the top 50 US markets by population. It will use the money it saves to focus on its best stores, where it will increase staffing and bring in new technology. Macy’s will likewise invest more heavily in digital and mobile.