Macy's Shuttering Up to 40 Stores in Early 2016
Macy's has announced that it will be shutting down 35 to 40—or about 5%—of its stores in early 2016. While the locations haven't been selected, the retail department store expects the chosen ones to have a combined revenue of just $300M. There are 770 Macy's stores—52 have been closed over the past five years and 12 have been opened. Macy's revenue last year was just about stagnant at $28.1B, but it has plans to try and compensate for the poor sales. Other than trying to attract customers online, Macy's is also opening lower-priced Macy's Backstage stores, its version of Ross, TJ Maxx and Marshalls. The retailer is also setting its foot in China's retail market by creating a JV with a Hong Kong retailer. The company also announced plans to sell electronics by opening Best Buy shops in 10 of its stores come this November. "While making the decision to close stores is difficult, we know it is necessary for us to remain competitive as customer shopping patterns continue to change," Macy's CEO Terry Lundgren said in a statement. [Crain's]
