Macy's Announces Closure Of 68 Stores, Cuts 10,000 Jobs
Instead of cheer, the holiday season brought gloom to nationwide retailer, Macy's. According to the New York Times, the retailer endured lower sales during the holiday rush, which dropped to 2.1 percent from November to December.
Given those low sales, the company was forced to slash 10,000 jobs and shutdown 68 stores. Chief executive of Macy's, Terry J. Lundgren, said he remained optimistic on avoiding this encounter, while hoping that the last two months would see stronger sales. But there's been a preparation for this matter, stating that stores have steadily been closing due to them being "unproductive or are no longer robust shopping destinations because of changes in the local retail shopping landscape."
For 2017, Macy's seeks to begin the process of closing 63 stores by spring time. Around 3,900 people will be affected by the upcoming layoffs. According to the Times, Macy's will save close to $550 million a year with the structural changes.
In August 2016, Macy's first shared that 100 stores would face closure, with sales declining to 4.0 percent. The locations of the stores have yet to be announced.