Skip to content Skip to navigation

Macy's to Slash 10,000 Jobs Amid Weak Sales

Print Friendly and PDF
  • File photo courtesy of Macy's

Macy’s announced Wednesday afternoon that it is cutting 10,000 jobs as it embarks on a major restructuring amid weak store traffic and sales.

The company, a high-volume industry customer, described holiday sales as disappointing, with same store sales for November and December combined down 2.1%. Macy’s expects the weak sales trends to continue in 2017.

Kohl’s also warned Wednesday that holiday sales came in lower than expected, with November and December same store sales falling 2.1%, leading the company to cut its earnings guidance for the year.

Weakness at Macy’s and Kohl’s makes Zumiez’s results look even brighter – the company said December same-store sales rose 3.4%, on top of a 5.7% increase in November. (See more details about Zumiez's results here.)

Macy’s shopping trends echo what many retailers have been experiencing over the past few years – strong digital sales more than offset by anemic traffic and sales in stores. While digital sales are growing quickly, they are still a very small part of most retailers’ total sales.

OUR SPONSORS

The company detailed the 68 stores that will be closing as part of the previously announced plan to shutter about 100 stores in the next few years. Currently, Macy’s operates 730 stores.

About 3,900 employees are expected to lose jobs because of the store closures.

Another 6,200 jobs will be cut as a result of a major restructuring of the company’s central organization, which will be streamlined to cut costs and speed up decision-making. Macy’s will also trim non-payroll costs and reduce its field infrastructure because it has fewer stores.

The moves announced Wednesday are expected to save $550 million, some of which will be invested in digital initiatives, store growth strategies, expanding the bluemercury beauty business, opening more Backstage off price locations, and investing in China.

 

OUR SPONSORS

Holiday Summary

A bright spot in holiday was apparel sales, with women’s, men’s and kids performing well, especially in active and cold weather.

Digital sales grew double digits.

However, major weakness in handbags and watches dragged down results, the company said.

For the full year, Macy’s expects same-store sales to come in at the low end of its negative 2.5% to negative 3% guidance.

 

More on: 

More news

Last updated: : 07/27/2017 - 15:36

Kering released details about Volcom's first half results today. We have the numbers, and talk to CEO Todd Hymel about what they say about Volcom's business and the overall market.

Last updated: : 07/26/2017 - 12:14

Given the skeptical view of environmental issues in the new administration, we talk with the SIMA Environmental Fund President about the need for the industry to come together to protect the future of the surfing lifestyle and business

Last updated: : 07/25/2017 - 04:21

Details about Vans' stellar Q2, plus information about the brand's eye-popping store comp increases

Last updated: : 07/26/2017 - 12:13

Doug Palladini shares the thinking behind Vans first proper headquarters in 51 years, and we discuss his first year as company President

Last updated: : 07/24/2017 - 11:28

Swim brands from across the world came out to Miami Swim Week to show their Spring and Resort 2018 lines

Last updated: : 07/24/2017 - 06:15

Billabong hosted a cocktail party for retailers Sunday at the W Hotel during Miami Swim Week

Last updated: : 07/21/2017 - 09:30

We talk to Eric about why he is optimistic about "craft" retail and the industry, why retailers shouldn't take money for windows from brands that have grown beyond the core, and which newer brand may be on the brink of big things

Last updated: : 07/19/2017 - 16:14

Partner Stephen Bruner on barware brand Corkcicle's growing presence at surf retail and why they think their boutique approach is an advantage over more widely distributed water bottle competitors

 

Last updated: : 07/18/2017 - 07:56

An interesting talk with Frank Messmann about the challenging hardgoods market, future plans for Penny, and why he has added brands like Arbor to the Absolute portfolio

Last updated: : 07/17/2017 - 14:39

The first ever Agenda Festival opened its doors to the public Saturday in Long Beach for a music and shopping experience in skate, surf, street culture, food and art