However, that had changed in the last decade, with the rapid growth of the online giant Amazon, discount and low-priced stores like TJ Maxx gaining popularity, as also an extended recession that reset the value of a dollar. Most of the store closings will come in 2017. Last month it also announced it was experimenting with technology to help in-store shoppers.
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Including the Jefferson Valley Mall location, there are 45 in NY state, that, together with the company’s Bloomingdale’s and Bluemercury stores, employ 7,400 people, according to the company’s website.
At its peak in January 2007, the chain had 868 stores, including locations under the Bloomingdale’s brand, the AP reported.
Together, the annual sales volume of the 100 locations to be closed is expected to be about $1 billion.
Gennette said they are closing a large number of stores “proactively” to better invest in the most profitable and “highest-potential locations”. “For most of the 100 locations, it will be announced closer to the end of our fiscal 2016”. The retailer has been under pressure from activist investors to evaluate its real estate. Chief Financial Officer Karen Hoguet told analysts the company is in talks with potential buyers of its San Francisco men’s store. The plans are for that operation to be combined into its main Union Square store.
Macy’s, under pressure from activist investor Starboard Value LP, is working on partnerships to monetize its huge real estate portfolio, which includes landmark properties such as its Herald Square and Union Square stores in NY.
Penney posted a net loss of $56 million, or 18 cents a share, compared with a loss of $117 million, or 38 cents a share, last year. Excluding charges related to store closings, the company earned 51 cents, which is above the 48 cents estimate from FactSet. Transactions fell 5% in the quarter and tourist credit card sales were down 12%, but the company noted that was better than a 20% drop in the first quarter.
Second quarter results were mixed: Macy’s reported a 2.6 percent decline in same-store sales, its sixth consecutive quarterly decline. The stock jumped 17.1 percent to close at $39.81.
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Bell described Macy’s as a “venerable brand that does well”, but said the company is struggling in some markets. Some forecasts expect Amazon to surpass Macy’s as the largest online retailer of clothing next year, the AP reports.
