This Wednesday, Macy’s announced that 68 stores will be closed and about 10,000 jobs will be cut. The announce comes as a result of the unfavorable earnings they had last year.
The sales in stores dropped by 2.1%. After the news resurfaced on Wednesday, its stock raised by 10%.
About 3,900 employees will be left jobless following the closing of the stores. About 6,200 other jobs will be cut. The company wants to modify the management team.
Some shops have already been shut down, but during this year, the others will be closed as well. They hope to finish this by the half of the year.
In the United States, only 660 stores will be available. Last August, Macy told about its plan to close some of their stores. They expect to cash some savings that will be the used for its digital business and in marketing efforts. Macy’s backstage and China, Bluemercury will beneficiate from this savings.
A professor from the Columbia Business school said that we will hear more decisions like this from Macy’s. “I would also say it’s inevitable. And there’s definitely more to come,” said the professor.
He also said that both Macy’s and other retailers did not understand how their performance really was. He expects more to follow Macy’s example and many job cuts and closures are predicted for this year.
Kohls posted this Wednesday a report that shows how little their holiday earnings were.