Macy’s Inc. said Thursday that it will close about 100 of its full-line stores next year – some 15% of its full-line store base – as the struggling retailer grapples with rapid changes in people’s buying habits.
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Macy’s now operates 728 stores in the US.
“Customers almost everywhere in America will have easy access to Macy’s stores, with the additional convenience and increased functionality of our dynamic digital offering”, Macy’s President Jeff Gennette said in the press release.
Gennette said they are closing a large number of stores “proactively” to better invest in the most profitable and “highest-potential locations”. Macys said on Thursday that the 100 stores generated about $1 billion in annual sales, but that some of the stores real estate was more valuable than their retail sales.
Macy’s shares rose 10 percent to $37.40 at 8:06 a.m.in early trading in NY after the report was released.
National retailer Macy’s plans to close 100 stores around the country, but whether the Macy’s department store in the Valley River Center in Eugene is on the chopping block remains unclear.
The results surpassed Wall Street expectations.
The chain business will pour focus its concentration and money into its online business, after a hard 18 months.
With the store closures, Macy’s will have 666 stores including 38 Bloomingdale’s locations. The group has already closed 38 stores this year. “Macy’s first-ever “Black Friday in July” event was a terrific success which drove record store and online sales for a mid-year period”.
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Macy’s already announced this year it would close 40 stores as online competitors continue to win market share. Macy’s expects earnings per diluted share – excluding asset impairment charges and retirement settlement charges – in fiscal 2016 to be in a range of $3.15 to $3.40. In addition, six Macy’s Backstage outlet stores opened in fall 2015. That topped the $5.77 billion estimate from FactSet. The major retail chain, which is suffering from declining sales, has 728 stores to choose from.
