Cost Cutting Effort at Macy’s; Job Trimming and Shuttering Shops in the Cards
Macy's Inc. suffered its worst holiday sales ever and the disappointed figures forced the retailer to say on Wednesday that it has plans of cutting jobs, relocating staff and exploring other options for its real estate to cut down on the cost. The retailer said it has plans of trimming approximately 4,800 jobs and shut down about forty stores.
The department store chain said that comparable sales for the holiday season in November and December fell 4.7 percent in 2015 compared to 2014.
It could be a warning sign for the entire retail industry and not only for Macy's. The holiday sale season is extremely important for retailers as many of them make about forty percent of their annual profit during that time.
On Wednesday a statement said, the company plans to trim $400 million in annual expenses. The job cuts will affect almost three to four workers at every Macy's and Bloomingdale's stores that number close to seven hundred and seventy. It accounts for approximately two percent of its total workforce. However, some of the employees are likely to get other job offers from the company.
The cost cutting moves turned out to be a hit with the investors which reflected through the rise in shares prices to as much as $38.25 or by 5.8 percent.
United Kingdom News
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