Speaking on CNBC’s Sqawk Box show, Macy’s chief executive Terry Lundgren said “Whenever there’s been a setback in our company, we’ve been first in the industry to take a very aggressive stance at moving us forward”.
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The retailer said on Thursday as it announced its earnings that it would shutter 100 stores, mostly at the beginning of next year.
Macy’s also continues to look for opportunities to unlock value from its real estate portfolio, particularly at flagship locations in cities, a move it’s faced pressure to do for the past year.
“In a separate release also issued today Macy’s says it will maintain its physical locations “…in 49 of the top 50 US markets, Macy’s will operate fewer stores and concentrate its financial resources and talent on our better-performing locations to elevate their status as preferred shopping destinations.
Macy’s said closing the stores would enable the chain to bolster its online presence and “elevate our total customer experience across all methods of shopping”.
There are Macy’s stores at Walden Galleria and Boulevard Mall.
Company officials have not said which stores will close.
Tri-County is the oldest local Macy’s store. Turnover dropped 3.9 % to 5.9 billion dollars (5.3 billion euro), while its net profit fell sharply, from 217 million dollars (194 million euro) to 11 million dollars (10 million euro).
WCPO Insiders will learn why those Macy’s stores are the most vulnerable to closure.
It’s all part of a big change for retail: Oodles of other big-name brands, from Sports Authority to Ralph Lauren, have also closed locations lately as online shopping makes it harder for brick-and-mortar stores to survive.
The company, which operates the upscale Bloomingdale’s stores as well, said it would increase its exclusive products and would prioritize investments in the stores that offer the highest growth potential.
The iconic retailer didn’t give actual information on the stores and location that will be closed down, but he was sure that 10%of the Macy’s stores would be closed by early next year.
The retailer Thursday also reported fiscal second-quarter sales and earnings that beat analysts’ estimates.
Sales in the second quarter totaled $5.866 billion, a decrease of 3.9 percent, compared with sales of $6.104 billion in the same period a year ago.
Jack Manning, president of the Beaver County Chamber of Commerce, said he hasn’t heard one way or the other if the local Macy’s is on the list. Five analysts surveyed by Zacks expected $5.75 billion. Sales at stores open at least a year fell 2%.
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Three months ago, the company cut its guidance for earnings per share to between $3.15 and $3.40.
