Trending

Macy's closing 125 stores

Macy's plans to close stores in smaller malls, and explore new formats to tackle plummeting mall traffic in the United States.


Representative from Macy's said last week that there are plans in place to close 125 of its stores over the next couple of years and cut minimum 2,000 corporate jobs as a cost-savings effort.

The company said it would close stores in lower-tier malls, and explore new avenues, as it looks to tackle plummeting mall traffic.

The chain, which has been struggling to boost store traffic as consumers opt for online shopping in the United States, has closed more than 100 stores since 2015 and cut thousands of jobs.

"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams," Chief Executive Jeff Gennette said.

The to-be-closed 125 stores currently account for about $1.4 billion in annual sales, the company said.

It also said it expects annual gross cost savings of $1.5 billion by 2022, with $600 million expected in 2020.

It forecast full-year net sales to be between $23.6 billion and $23.9 billion, below analysts' average estimate of $24.36 billion, according to IBES data from Refinitiv.


Related News

Michael Kors is going Fur Free in 2018

LVMH aims to become leading luxury start-up hub in Europe

France's LVMH is helping projects by upcoming entrepreneurs in the luxury goods space, including a start-up whose software might help detect counterfeits. The owners of Louis Vuitton, aim to support the new businesses by hosting them in a mega-campus where they can collaborate with its in-house brands.

LVMH, the world's biggest luxury goods group, is following in the footsteps of French cosmetics giant L'Oréal in grabbing a corner of Station F, a vast startup incubator in Paris where it offers rent-free space to the startups.

"The idea is to animate and activate those conversations around the things that might affect the luxury industry," said Ian Rogers, who is a former Apple executive who joined LVMH in 2015 as chief digital officer.

Paris is among one of the major European cities bidding to displace London's dominance in the startup scene as BREXIT looms and President Emmanuel Macron pushes a pro-reform agenda to promote business and investment.

Station F was launched last year by French billionaire Xavier Niel, who is also the partner of Delphine Arnault, an executive at Vuitton and daughter of LVMH boss Bernard Arnault.

Controlling Groups at LVMH and Kering pledge $300 Million to Rebuild Notre-Dame

Two Editors at Vogue Step Down

The two top editors of Vogue, Phyllis Posnick, the executive fashion editor of Vogue stepped down alongside fashion director Tonne Goodman last week. They are considered the two most recognisable faces at any fashion show in New York.

It was announced by Anna Wintour, the editor of Vogue, that both Phyllis and Tonne will leave their staff positions and become contributing editors.

The position of fashion director will be taken up by Virginia Smith.

Designed by IMD.