As we sail into 2018, people are excited for the future. Every day we are getting new technology advances, and before we know it, we’ll be living like the Jetsons.
We can literally buy our groceries online, folks!
Unfortunately for industries, such as retail stores, that rely on people physically coming in and buying products, this is a death sentence.
With online stores like Amazon booming, department stores like Macy’s are struggling. The retail giant announced 5,000 job cuts to come as well as the closing of seven more stores.
The retailer’s cost reductions come after its holiday sales in stores open at least a year rose 1.1%.
Although the company described its holiday sales as “solid,” the performance trailed fellow department-store chain J.C. Penney, which posted a 3.4% increase Thursday.
The seven locations that have just been announced for closure are:
- Miami (Downtown), Miami
- The Oaks, Gainesville, Fla.
- Novato (Furniture), Novato, Calif.
- Honey Creek Mall, Terre Haute, Ind.
- Birchwood Mall, Fort Gratiot Township, Mich.
- Fountain Place, Cincinnati
- Burlington Town Center, Burlington, Vt.
They are also going through with closing down several stores that they have previously announced closure for. They are:
- Laguna Hills Mall, Laguna Hills, Calif.
- Westside Pavilion, Los Angeles
- Stonestown Galleria, San Francisco
- Magic Valley Mall, Twin Falls, Idaho
This is not new news, though. Macy’s announced in the summer of 2016 that they were looking at closing 100 different store locations, and have revealed 81 of them to date.
Net job cuts, including the closures and reductions at remaining locations, will total about 5,000, Macy’s spokesman Blair Rosenberg said in an email.
The company also said it would add jobs in certain locations to properly staff stores.
Liquidation sales are likely to begin Jan. 8 and continue for eight to 12 weeks.
Company CEO Jeff Gennette said, “Looking ahead to 2018, we are focused on continuous improvement and will take the necessary steps to move faster, execute more effectively and allocate resources to invest in growth.”
The company has been struggling with its massive real estate footprint and traditional retail model, as Amazon.com soars and physical competitors such as treasure-hunt retailers T.J. Maxx and Marshall’s offer alternatives.
Despite the challenges, Macy’s reported strong performances for active apparel, beauty products, shoes, dresses, coats, fine jewelry and some other items.
The future does not appear to be merciful to the physical retail industry.
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