Macy’s will be shuttering dozens of stores.
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The company will communicate its store closing decisions directly with the associates in those locations prior to a public announcement.
Macy’s, Inc. (NYSE:M) has announced that it will close 35-40 underperforming stores next year, which represents around 5% of its fleet.
In the meantime, the retailer plans to open six new “Macy’s Backstage” locations, which is an off-price store that sells discounted merchandise. The tumble snaps an nearly seven-year winning streak as the retailer deftly navigated the Great Recession and its lingering aftermath that dragged down so many competitors.
The store chain has been boosting e-commerce to facilitate online order delivery, the customers can get the delivery same day of order placement or pick orders from the stores.
Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer, said that physical stores are vital for the company’s omnichannel strategy.
The licensed Best Buy shops will measure about 300 square feet in undisclosed locations throughout the country. “Our customers have expressed interest in electronics for self-purchase and gift-giving, and this collaboration with Best Buy reinforces Macy’s as a shopping destination throughout the year for the products that are most in demand”, said Macy’s president Jeff Gennette in a statement. Some of the new stores will replace the locations of stores that closed.
The retail space will feature Samsung smartphones, tablets and smart watches, as well as audio devices and accessories from Samsung and other brands.
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No longer will you only be able to buy boots and bedding at Macy’s – now you’ll also find consumer electronics in their stores. The company hasn’t said which stores will close, but they only account for 1% of the company’s sales. In 2014, Macy’s had sales of around $28 billion. The comapny saw disappointing sales in its most recent quarter and lowered its full-year guidance for the fiscal year, reports CNNMoney.
