Macy’s to Close 100 Stores Beginning Next Year
Macy’s will be closing about 100 of its more than 700 stores across the U.S., the company announced today, as the company seeks to divert resources to its online operations.
The majority of the stores will be shutting their doors early next year, representing the shuttering of about 14 percent of all locations.
After the announcement, Macy’s stock was up about 15 percent during the early hours of trading today.
“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,” Jeff Gennette, the president of Macy’s, Inc., said in a statement. “We recognize that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand.”
While the company had rebounded well since the Great Recession, it has seen slowing sales over the past year and a half, The Associated Press reported.
At its peak in January 2007, the chain had 868 stores, including locations under the Bloomingdale’s brand, the AP reported. After the new closures, the company will have 666 stores, 38 of which will be Bloomingdale’s.
“We decided to close a larger number of stores proactively so we can invest in a winning customer experience in our most productive and highest-potential locations, as well as invest in growth sooner and more aggressively in digital and mobile,” added Gennette, who will take over as the CEO of the company in the first quarter of 2017.
Macy’s said it will announce which stores it will close at a later date.
ABC News’ Rebecca Jarvis contributed to this report.