On Wednesday, Macy’s has said that it is going to shut close to 30 stores in their efforts of increasing profitability and focusing on the stores which are most profitable.
These new closures wave has followed the sales of holidays which did not turn out to be as bad as a lot of the experts had been fearing. This news ended up making the stocks rise as the shares had closed higher by 2.4%.
In the third quarter, Macy’s had posted their first decline of same-store sales in the last two years which has made it slash the year’s profit outlook. The company has attributed this weakness in sales to the weather which is unreasonably warm and the foot traffic being soft. It said that the performances had been poor in the lower-tier shopping malls.
In the year 2016, Macy’s had said that they were planning the shuttering of as many as 100 stores in the days to come. The first closure wave had been announced in the January of 2017 as it had released the names of the stores which it would be closing. In the year 2018, it had announced that there will be a dozen more which are going to close down. In the previous year it had shuttered below 10. Most of the closures have come as the store leases had expired. The closures which are going to happen are being seen as a short-term sigh of relief for the wholesale partners in United States. The management has been targeting the stores which have lower productivities for closing them.
Macy’s has maintained that it is trying to focus on their best real estates.