Macy’s To Close 68 Stores; Over 10,000 Jobs Eliminated
Macy’s is a household name. It is not the highest-end of fashion, nor is it the most affordable. To me, it is a middle-of-the-road retail chain. It is reliable for a good set of basics that you can be sure someone else in the room is also sporting. It is a store I would expect to be around forever.
However, with the New Year came the news that longtime retailer Macy’s will be closing 68 stores across the United States. Reports confirm that sales decreased by 2% during the holiday months, and stock has dropped almost 10%. Several stores have already closed, and the 63 to follow will be the cause of 3,900 jobs lost. Macy’s intends to restructure their business plan, which in itself will lead to an astounding loss of 6,200 additional jobs. This brings the total number of eliminated jobs to over 10,000.
These 10,000 jobs are about 7% of Macy’s overall workforce, and about 660 retail locations will remain open - for now. After witnessing a decline in business in the named 68 locations, closing these stores seemed like the retail chain’s best option. The hope is that closing the unproductive locations will allow the company to redirect funds to more profitable stores. Many are concerned that this will not be enough to rescue Macy’s from its decline.
Some attribute the downfall of brick-and-mortar locations to the increase in popularity of online retailers. It seems as though everyone is on Amazon, and even other retailers are stepping up their online sales. Retailers that rely on in-person shopping may need to reconsider their business model - which is exactly what Macy’s plans to do.
Nevertheless, there are concerns as to whether this will be enough. Macy’s may not have the internet presence to stay relevant. Middle-of-the-road fashions may not be enough to keep the stores full. The plan to restructure will hopefully be enough for them to turn it around and remain in the game.