The American supermarket chain intends to reduce the number of stores by almost 14 percent.
US department store chain Macy’s to shut down around 100 stores in the beginning of 2017 due to, among other things competition from online retailers. In total, the company has 728 stores.
Activist Investors have previously been at Macy’s to bring out the value of their property assets. In several cases, the properties are more valuable than the value of the stores themselves, the company said today. Macy’s will take write-downs of 249 million dollars in the second quarter, based on preliminary figures for the stores to be closed down.
The sector has had a hard time lately with falling sales driven of less traffic to shopping centers, while e-commerce has progressed. Even discount chains has brought a tough competition.
“Nearly all of the stores to be closed today generates a positive cash flow, but in most cases their volume and profitability has been steadily declining in recent years “said the aspiring CEO Jeff Gennette.
Macy’s earlier in the summer announced that Terry Lundgren will leave as CEO in early 2017. He was replaced by Jeff Gennette.
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