Macy’s Inc. (M) on Thursday reported fiscal second-quarter net income of $11 million as it announced it would close 15 percent of its stores. That’s down about 23 percent from a peak in January 2007 of 868 stores including Bloomingdale’s.
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Macy’s maintained its full-year forecasts and said its target of limiting the fall in comparable sales to 3-4 percent “feels achievable”. Macy’s will shut about 100 full-line stores out of its portfolio of 728 locations. Penney is getting back in the business after more than 30 years.
Reports have it’s that, Macy’s decision of closing some stores was bound to happen because, many of Macy’s stores are located in small regional malls and retailers turned to off- priced retailers, awful unseasonable weather, and again bad economy resulting in worldwide tourist low patronage and spending.
But as Macy’s refines the list of 100 stores it plans to close – starting at the end of this year – it’s anybody’s guess whether the region’s six local Macy’s department stores will survive the cut.
Over the past year, the company has also announced plans to open discount stores in the United States, start new stores that will sell luxury beauty products, and offer same-day delivery services in more USA markets than Amazon.
The company, which operates the upscale Bloomingdale’s stores as well, said it would increase its exclusive products and would prioritize its investments in the stores that offer the highest growth potential.
For decades, United States citizens had relied on numerous shopping centres and department stores for just about everything from paper towels to electronic goods.
Clothing and accessories shops slid 0.5 percent, while building and garden suppliers also fell 0.5 percent.
Total sales fell almost 4 percent to $5.87 billion in the second quarter after falling 7.4 percent in the first quarter.
Several in Maryland, including stores at malls such as Marley Station and Security Square, are likely to be among those that close, said Mark Millman, president and CEO of Millman Search Group, a retail consulting and executive search firm.
The company also said it would continue to invest in its online business.
“We are encouraged by the distinct improvement in our sales and earnings trend in the second quarter”, CEO Terry Lundgren said in a news release.
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Excluding the impact of earlier store closings and other items, Macy’s per-share earnings were 54 cents, down from 94 cents in the same quarter a year earlier. That topped the $5.77 billion estimate from FactSet.
