Executive Briefings

Following Holiday Sales Downturn, Macy's Plans to Shut 40 Stores

After a disappointing holiday season, Macy's Inc. said Wednesday that it planned to cut about 4,800 jobs and close 40 stores as part of efforts to slash costs.

Following Holiday Sales Downturn, Macy's Plans to Shut 40 Stores

The department store chain, which is closely associated with the holiday season, said comparable sales for November and December 2015 dropped 4.7 percent compared with the previous year.

That could be a sign of trouble for the overall retail industry, where some companies make as much as 40 percent of their annual revenue during the holidays.

Terry J. Lundgren, Macy's chief executive, said historically warm weather was partly to blame. About 80 percent of the drop in comparable sales was due to slow buying of cold-weather gear, including sweaters, gloves and coats. The strong dollar also depressed tourist spending, he said.

One bright spot was the growth in online sales, which increased 25 percent to nearly 17 million orders in November and December, a record for the company.

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The department store chain, which is closely associated with the holiday season, said comparable sales for November and December 2015 dropped 4.7 percent compared with the previous year.

That could be a sign of trouble for the overall retail industry, where some companies make as much as 40 percent of their annual revenue during the holidays.

Terry J. Lundgren, Macy's chief executive, said historically warm weather was partly to blame. About 80 percent of the drop in comparable sales was due to slow buying of cold-weather gear, including sweaters, gloves and coats. The strong dollar also depressed tourist spending, he said.

One bright spot was the growth in online sales, which increased 25 percent to nearly 17 million orders in November and December, a record for the company.

Read Full Article

Following Holiday Sales Downturn, Macy's Plans to Shut 40 Stores