Macy’s Makes Bold Move By Closing 100 of Its Stores
Macy's, the largest department store in America, announced Thursday it will shut down 100 of its stores.
The move means Macy's will close nearly 15% of its stores and comes in the wake of slow sales and stock that has dropped more than 40% over the last year (although news of the stores closing was followed by its stock more than doubling).
It's not clear which stores will close and most are expected to remain open through the end of the year. It's also not clear how many jobs will be lost as the store tries to combat the continued rise in online shopping.
Macy's also closed 40 stores earlier this year. There are currently 675 Macy's around the U.S. and the stores that are shuttering bring in about $1 billion in sales.
“Nearly all of the stores to be closed are cash flow positive today, but their volume and profitability in most cases have been declining steadily in recent years,” Macy’s President Jeff Gennette said.
This decision by Macy's is the latest downsizing by brick-and-mortar stores. Walmart revealed in January it will close 269 stores and Sports Authority filed for bankruptcy and shut down all of its stores. Kohl's, Target, JC Penney, Kmart and Sears have also all closed stores, as well, in 2016.