Retail Apocalypse: Macy's will close 100 stores

Steep discounts have not reversed Macy’s declining sales.
As a consequence, yesterday the giant retailer announced it will close 100 stores — or nearly 14% of its fleet — “to focus on its best-performing stores”.
Macy’s currently operates 728 stores, including 675 of its traditional full-price locations. Over the past 6 years, it had already shuttered about 90 stores, but also opened 13 new locations.
Krystina Gustafson reports for CNBC, Aug. 11, 2016, that the company lowered its full-year forecast in May, after reporting its steepest quarterly same-store sales decline since the 2008 recession. At that time, the company had warned that sluggish sales in warm-weather clothing would weigh on its sales and margins in the second quarter, as it would be forced into additional discounting.
Most of the 100 Macy’s stores that are slated for closure will be closed down early next year, with the remainder shutting down as leases and other obligations expire or are waived. The locations of these stores will be released at a later date. Employees impacted by the store closings may be offered positions in nearby stores. Eligible employees who are laid off will be offered severance benefits.

Macy’s President Jeff Gennette said nearly all the stores are cash-flow positive, but “their volume and profitability in most cases have been declining steadily in recent years.” In some cases, the stores are not performing worse than the overall fleet, but their potential value from redevelopment exceeds their value as a retail store. Macy’s will also close a few stores where there is another location nearby.
After these stores close, the retailer will retain a physical footprint in 49 of the top 50 U.S. markets based on population. The company will use the savings from its store closings to focus on its “highest-potential locations,” and invest “more aggressively in digital and mobile,” Gennette said. Macy’s estimates the annual sales volume it would lose from these 100 stores combined is roughly $1 billion after factoring the revenue it expects to retain due to nearby stores and the web.
Macy's CEO Terry Lundgren
Macy’s CEO Terry Lundgren told CNBC: “Whenever there’s been a setback in our company, we’ve been first in the industry to take a very aggressive stance at moving us forward. That’s just part of it. By closing 100 stores… we’re getting out in front of this.” Lundgren said he’s confident about consumers’ ability to spend moving forward, pointing to growth in auto sales and home improvement: “This is good news. They don’t need another car. They don’t need to fix their home anymore… So it’s my turn. It’s our turn.”
Blah, blah, blah.
The company announced in June that Lundgren would step down from his role in 2017, and be succeeded by Gennette.
Terry Lundgren has been Chairman, President and CEO of Macy’s, Inc. since 2004, which means he’s totally responsible for these:

~Eowyn

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truckjunkie
truckjunkie
4 years ago

Gee-what a shame all those employees will have to suffer because of his mismanagement.

lophatt
lophatt
4 years ago
Reply to  truckjunkie

Yeah, that’s the problem with corporations. The belief is that profit is the only goal. The old business model, family-owned business, consisted of profit and loyalty. The employees were loyal as they were treated fairly. The companies were loyal as they depended on the employees. Corporations stand that on its head. NOTHING matters but profit. As a result, its a destructive business model. One of the reasons it was fairly controlled at the outset was that it was a license to steal and pass social costs on to others. They have bought their way out of that problem and rule… Read more »

lophatt
lophatt
4 years ago
Reply to  Dr. Eowyn

Weil, they are free to indulge themselves in more ways than their disgustingly large salaries. There is nothing “pure” about “pure profit uber alles”. Whether its Marx or or a free market thief it all ends up the same. I don’t believe in somebody else’s ideology being “pure”. I use my own judgement based upon what my faith informs me and my life’s experience. Subscribing to someone else’s ideology doesn’t absolve a person of decent human behavior. There is nothing “holy” about corporations, then or now. Their principle reason for being is to absolve those who make decisions from responsibility.… Read more »

Steven Broiles
3 years ago
Reply to  Dr. Eowyn

I think Karl Marx is rejoicing in Hell, because social engineering is what he wants!

Akita
Akita
4 years ago

As the Muslim population rapidly grows, one black burqa lasts several years so Muslimas have little need for the seasonal togs offered by Macys. No wonder they are hurting. Bet they are shuttering their Fairlane Mall branch in Dearborn, Michigan.

Recynd77
4 years ago
Reply to  Akita

I think it’s all designer duds under those burqas, at least around here (Orange County, CA).

lophatt
lophatt
4 years ago
Reply to  Recynd77

So your headwear doesn’t go our of style for 1,300 years? There is something “off putting” about a belief that God cares about you exposing your noggin. Or, God made you beautiful in order to cover it up so no one can tell. I think this would be an irritant if we had resolved all our other problems in life and just had this to contend with. I think I’ll just leave them alone and stay away from them if possible. It seems clear that they have no intention of assimilating. The fully expect us to change. This is a… Read more »

josephbc69
3 years ago
Reply to  Recynd77

Ha ha ha; maybe they have private burqaslesque ‘invitation only’ parties….

DCG
Admin
DCG
4 years ago

Haven’t shopped at their store or online since their 2011 transgender announcement. Their products were way overpriced any how.

Dave
Dave
4 years ago

Macy’s pushed Joshlins out of Colorado Springs and they never have been close to Joshlins in quality and service, variety etc. They try so hard to be trendy but neglect the needs of the public with normal clothing. All younger people stuff and strange marketing practices. Many of us have to buy clothes at Costco for the needs of people in the West. This is not New York.

josephbc69
3 years ago
Reply to  Dave

Dave, I read your comment and feel your distress: people said the same about my busines when I had to close in 1987 due to the larger economy. BUT when –not ‘if’– Macy’s departs, Joshlins may be able to return. It’s a classic old rule in finance that ‘bad money drives out the good,” and conversely, the good can return when the bad depart –or are driven out of the community!
I read an article about Joshlins, and it appears to have been a model corporate citizen: https://www.denverpost.com/2012/08/15/joslins-department-store-employees-reunite-recall-stores-metro-area-heyday/

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Zorro
Zorro
4 years ago

Macy’s destroyed the local department store cachet. Who remembers going on vacation and shopping at The Broadway and Burdines? These stores are now in a vortex of boring and homogeneous retail, lacking good customer service. TJ Maxx and Marshalls are offering better deals on clothing and home goods at prices people want to pay.

lophatt
lophatt
4 years ago
Reply to  Zorro

They chase profits. When I was young, shopping was a pleasant experience. We didn’t have “malls”, you went downtown and store to store. Department stores had departments. The people who worked in them were courteous and knowledgable about their products. Now, we go to “warehouses” in malls. The kid who works there only knows what it says on the box. Soon we’ll be ordering on line, as they no longer want to spend “their” money on our convenience. Again, this is the “corporate model”. Not only is it purely profit-based, they must continually “improve” profit even when they’re doing fine.… Read more »

josephbc69
3 years ago
Reply to  lophatt

“By the way, I have worked for a few very good companies. They are getting harder and harder to find.”
And that is God’s truth, which is why I became an independent business man at 19.5 yrs and have never looked back, except for the brief periods when I was a management consultant for multi-million dollar firms in need of upgrading morale, productivity, and sales.
The GREAT Question is ‘Why are they getting harder to find?” I have my own answers & thoughts, but I’m more interested to learn what FotM’s readers are on this subject!

lophatt
lophatt
3 years ago
Reply to  josephbc69

Yes Joseph, I still consult, but I’m thinking of giving it up. After all, I’m old. In many ways “business” isn’t any different from other aspects of our lives. Morals apply as well. The current atmosphere has no place for morals or ethics. This is not the same as “legal” and “Illegal”. Because the focus is purely on profit, employers come to resent the employees. That is because the employees represent their largest expense. They are under constant pressure to “improve” their bottom line and the only place to do that is the labor force. Reputation no longer means anything.… Read more »

josephbc69
3 years ago
Reply to  lophatt

I’m not sure what you mean when you write that you are ‘old,’ as at 73 I still happily work in my residential contracting business, putting in 10 hour days as needed, albeit more slowly than thirty years ago! The spirit is willing, but the flesh, dontcha know? There’s enormous truth in what you wrote, especially in regard of one’s reputation. All we have in life that is truly ours is our word and our honour. If we cannot maintain integrity in those, then as you painfully point out, ‘without a higher standard, there will be no improvement.’ Dr Richard… Read more »

Steven Broiles
4 years ago

Thank You for looking at the economic end of the debacle, Dr. E. But I take another perspective on it, and that is of the EXTINCTION PROTOCOL. Eugenics—up until about the 1950’s or so—was pushed by the academics as a way of “improving the stock,” as it were. But now the ulterior motive is about to be exposed: The EXTINCTION of the species. The Ruling Elite and some of their puppets do not look upon us as flesh-and-blood human beings: To them, we are USELESS EATERS. They’re quite fed up with the chore of having to feed, clothe and house… Read more »

lophatt
lophatt
4 years ago
Reply to  Steven Broiles

Very nicely said, Steven. Few agree with me that there really is no distinction between extreme communism and capitalism. In the end, left alone, they both deliver slaves. They just take a different path to the same end. We live in groups. When one lives in groups one has to have respect for the others. Working together we can accomplish more, protect the weak, etc., working like individual predators in the Jungle we become Ayn Rand. Sanctifying business magnates is ridiculous. Elevating greed to an attribute is equally noxious. Any respect that any of us earn should be related to… Read more »

Steven Broiles
3 years ago
Reply to  Dr. Eowyn

From what I have learned from listening to, reading and studying Alex Jones, FOTM, Henry Makow, David Icke and others is that the Elites want a reduced population. The Georgia Guidestones says the same in stone. Some apparatchik from the UN said she was looking forward to “depopulation” world-wide. The Queen of England, the Rothschilds and their ilk want the life-extension and the natural resources for themselves. Theirs is a system of theft because they are parasites. Their religion is Satanism, and they look upon themselves as real Ubermench—those “Supermen” who destroy our moral code and establish their own, and… Read more »

lophatt
lophatt
3 years ago
Reply to  Steven Broiles

Yes, all of those things are true, but they are not really the “goal”. Enslavement is the goal. Before enslavement there will be a culling. “The rich” are not driven by a desire to get more. They have plenty. They do not want others to have anything. If others have anything they have the means to control their fates (to a point), and the “rich” lose control. It is a point that most never consider. “Money” is “control”. Before money became so prevalent, it was somewhat harder to control large masses of people without expending great sums of one’s own.… Read more »

josephbc69
3 years ago
Reply to  Dr. Eowyn

Eo, I too have asked myself that, as these are universal concerns for we who are the 90%. This is what I’ve concluded after more than 50 years of improving the property of the 10%: 1. As US author Fitzgerald famously remarked, ‘The rich are different.’ They feel themselves apart from all else, but never discuss it: this in turn creates Attitude. 2. Because of #1, they act as if what they do is free of unintended consequence[s] or penalties: they are gods, and act accordingly. Dontcha love it? NOT! This in turn creates Belief. 3. With 1 & 2… Read more »

Steven Broiles
3 years ago
Reply to  josephbc69

You explained what I was trying to say, Joseph, and it is floridly (and luridly) described by Nietzsche. What we have is NIHILISM, the destruction of all moral values. Nietzsche clamored for a “transvaluation of all values.” And the rich, as you correctly quote Fitzgerald, “are different.” So they set the agenda, and we’re stuck reacting to it. This is why they always have us on the run!
The Ruling Elite are SATANISTS, and I hope and pray that “the Devil takes them!”

josephbc69
3 years ago
Reply to  josephbc69

Sorry! I wrote this in the early hours, and the line ‘Brother can you spare a paradigm?’ should be “Brother can you paradigm?”

lophatt
lophatt
3 years ago
Reply to  josephbc69

I generally agree with that. There are some things that we sometimes discuss here, that are not normally discussed in other places. The religious aspects of this, for example. “The rich” are generally thought to mean a class of people who are controlling things. They are not. They may benefit to a larger degree than most, but they are merely “employees”. As to why they would sponsor an agenda that could be injurious to themselves, I don’t think that they think things through and, even if they did, they’d follow orders anyway. As has been said here, they are Satanists,… Read more »

Dave
Editor
Dave
3 years ago

Thank God for Internet shopping.
LOL – I can do it from home and not even have to shower. 🙂
I stopped shopping at Macy’s 10 years ago, as their pricing is totally insane.
I can get the exact same stuff delivered to my front door for far less money, and I don’t have to risk life and limb by parking out in zooloo land at my local suburban mall and walking 2 miles to get what I want.
– And I don’t have to pay for the stores hideous leases, either.

Steven Broiles
3 years ago
Reply to  Dave

I do love the internet. Amazon and Alex Jones for shopping, for sure. But I still love a trip to the supermarket. As Henry Makow has admitted, it is “my guilty pleasure,” too, even if I don’t buy anything or talk to any of the ladies.

alan
alan
3 years ago

I wanted to replace a wallet that I had for 15+ years. I wanted a good one, but inexpensive. Checked Walmart, target, jcpenny, tjmax, sears, macys,etc. All of them offered the same wallet (4 colors, 4 styles, all same construction and materials, different “brand” boxes and packaging). The Walmart wallet was $14.95, the Macys wallet was ~$40-45. The rest were priced somewhere in between. All made in the same factory in China. All having different brand names. But all the same item, with minor style variations. So who would buy from Macys at $40, if they get the same stuff… Read more »

Recynd77
3 years ago
Reply to  alan

Alan, I totally agree. It’s what I’m referring to as all “coming from the same tube”. (Much like our politicians, food, health care, education, etc.). There’s very little in the way of quality selection anymore. Sure, you can PAY more, but it’s all the same third-world crap, only with a different label. Trader Joe’s stores have mastered this. Costco seems to have better quality control than most places, but it’s probably because they’re so big that they have their choice of Chinese manufacturers. Is anyone besides me totally disappointed by “the future” we’re living in? Who in the forward-looking 50s… Read more »

lophatt
lophatt
3 years ago

Precisely! We are free to purchase cheap Chinese junk in a manner of their choosing. There is an undercurrent, however, that shows that “they” control this and we must “ask” for any change. So these “trade agreements”, for example, are actually our rulers agreeing how they will treat us slaves without our input. With the increasingly controlled flow of “money” (i.e. cash, electronic transfers, etc..), we have lost the ability to set up alternate markets. That was part of the flap over the “bitcoin” issue or some of the other tries to coin new tender. That puts them in a… Read more »

I don't know
3 years ago

I would like for Macy’s to shut up!