As customers flock to fast fashion chains, online retailers, and non-middle class shopping on either end of the spectrum, Macy's sales have been plummeting in recent years. Today, the mid-range department store announced it's making some desperate "restructuring" moves that will leave 40 stores shuttered and thousands without jobs.
After a tough 2015, Macy's, Inc. said it will cut about 1,500 associate jobs, create a "voluntary separation opportunity" for 165 senior executives (35 percent of the positions will not be replaced), cut 450 back-office jobs, and eliminate 110 more roles by consolidating call centers. With the changes, Macy's hopes to reduce expenses by $400 million annually, starting this year.
"In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations," said Terry J. Lundgren, chairman and chief executive officer of Macy's, Inc. in a news release.
Through November and December Macy's said its comparable sales, on an owned and licensed basis, fell by 4.7 percent. And shares of Macy's have plunged more than 40 percent over the last 12 months. The company will also close 36 of its 770 stores by this spring, having already closed four in 2015.
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14 comments:
Well there goes another vacant anchor store for our illustrious mall
Sears will be next!
Sears should have been gone 10 years ago.
The store in the mall IS NOT CLOSING!!!!!
12:33, didn't you work at JC Penny's?
this will break my wifes heart.
Macys should be doing everything to beg Cracker Barrel to come in to give them some customers instead of shooting themselves in the foot.
According to the Macy's Press Release (the posting here is Esquire's opinion) Salisbury is not listed to close. As far as the Cracker Barrel/Macy snafu, Macy's Corporate HQ makes the decision concerning the release, not the Salisbury store. I do agree with you 1:12 - I have never driven past a Cracker Barrel with an empty parking lot. Seems to me the Cracker Barrel would be a good draw
for the Centre.
1:12 Cracker Barrel won't help Macy's. Macy's suffers from the same thing that Sears suffers from. It is called clothing styles that the majority of people aren't interested in and staff that aren't customer friendly.
Macy's sends all of the stuff that their upscale metro stores cant sell. it is a yard sale store. "send it to the eastern shore, they will buy it! "
When they close and all of the workers are laid off they can grab one of those "Shovel ready" jobs Obama promised.
2:31 PM said a mouthful, staff that aren't customer friendly, how true. Do they train them to be that way?
Except that obama's now opened the floodgates, and they'll be trying to underbid each other to grab one of those shovels. After all, who needs minimum wage when you can live fifteen to a house and pay no taxes?
Time for senior management to be given the boot. They are arrogant, evil snobs who have spent most of the last 10 years kissing the mirror. They just hired another high priced senior manager to help them figure out business opportunities as they lay off 1000's more. What exactly has management been doing- wasn't that their job.
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