2,500 Layoffs, Store Closings Announced at Macy’s

Macys_Logo-300In an effort to save nearly $100 million annually, Macy’s has laid out a cost reduction plan which includes laying off 2,500 workers and the closing of a handful of its brick-and-mortar stores.

In a press release issued on Wednesday, Macy’s chairman, president, and chief executive officers, Terry Lundgren said while Macy’s has experienced significant increases in sales and profitability over the years he has “identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers.”

In the release, Macy’s said it’s cost reduction plan includes “realigning, combining and reducing some positions in Macy’s stores” as well as “trimming certain central office, administrative, and back-of-the-house expenses” throughout the company.

Macy’s also announced that it will close five stores in the early spring in Arizona, Kansas, Missouri, New York, and Utah. Macy’s also announced that there are eight new replacements Macy’s and Bloomingdale’s stores currently being planned or are currently under construction.

While Macy’s is looking at a cost savings of $100 million, the retailer said its 2013 holiday comparable sales rose by 4.3 percent compared to 2012. Macy’s is scheduled to report fourth quarter sales and earnings on Feb. 25

Erin Lynch is the senior content producer at Multichannel Merchant. Erin can be reached (203)899-8461 or connect with her socially on Twitter, Google+, and LinkedIn.

 

 

 

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.