Macy’s will close 100 stores and its shares are jumping
Macy’s announced that it will close approximately 100 stores.
It’s part of the company’s attempt to improve business, following six consecutive quarters of declining sales.
In the most recent quarter, comparable sales (on an owned and licensed basis) were down 2%.
Macy’s has been struggling in an economy that’s defined by experiences. But the brand has been trying to revive itself. In Ohio, the company has set up a prototype of a more upscale store.
“We operate in a fast-changing world, and our company is moving forward decisively to build further on Macy’s heritage as a preferred shopping destination for fashion, quality, value and convenience. This involves doing things differently and making tough decisions as we position ourselves to serve customers who have high expectations of their favorite stores, online sites and apps,” Terry Lundgren, Macy’s chairman and CEO, said in a release.
The company currently has 728 stores, 675 of which are full-line stores.
“We believe that this reduction of 100 locations in the short term will result in a more appropriate store portfolio for Macy’s in the longer term and help us to accelerate our progress in building a vibrant omnichannel brand experience,” Jeff Gennette, who will take over as CEO in the first quarter of 2017, said in the release.
Macy’s shares jumped as much as 16% following the news.