This popular mall retailer is now closing 150 stores while cutting thousands of jobs nationwide, several sources report.
Macy’s has been slowly downsizing its retail footprint in recent years.
In 2020, the department store announced that it would be shutting 125 of its stores over the following three years as part of its “Polaris transformation strategy.”
A Macy’s spokesperson explained that part of this strategy is focused on optimizing the company’s store fleet to ensure it has the “right mix of on-mall and off-mall stores.”
The mall retailer’s plan panned out with continued closures in 2023.
However, Macy’s revealed in the beginning of this year that it wasn’t done.
In a memo sent out to employees on January 18, the company confirmed that it would be cutting a whopping 2,350 jobs and closing five stores to cut costs, The Wall Street Journal originally reported.
“Despite our strong and tangible progress over the last few years, we remain under pressure,” Jeff Gennette, Macy’s now-former CEO, and Tony Spring, Macy’s president and CEO-elect at the time, wrote in the memo, per the WSJ.
A month later, it’s clear that the pressures continue for this company, says BestLife.
In a February 27 press release, Macy’s announced its fourth quarter and full-year 2023 financial results.
And according to the report, the company’s net sales fell nearly -2% in the last quarter, leading to a -5.5% decline in net sales for the entire 2023 fiscal year.
With the release of its latest financial results, Macy’s Inc. also announced a new strategy for the company as it moves ahead.
Referred to as “A Bold New Chapter,” this plan is “designed to create a more modern Macy’s, Inc. that is expected to generate meaningful value for our shareholders in the years ahead,” the company stated in its release.
A core section of this new strategy is centered around the closure of 150 more Macy’s stores over the next three years.
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Also Read: This Massive Mall Retailer Is Now Closing In California
Other Economy News Today
This massive restaurant is now closing 41 locations over the next quarter due to major underperformance, sources report.
Bloomin’ Brands will close 41 stores over the next quarter, reports Restaurant Dive.
These units include 36 “predominantly older, underperforming restaurants” and five Aussie Grill locations, including three in the U.S. and two in international markets, according to the company’s latest earnings release.
Bloomin’ decided to close the restaurants in question following a periodic review of assets that included consideration of trade area, historical performance and the investment required to renovate the units and strengthen their sales, CEO David Deno said on the company’s Q4 2023 earnings call.
The company will see “asset impairments and net closure charges of $32.3 million during Q4 2023.
We expect to complete these closures during Q1 2024 and incur charges of between $8 million and $11 million,” according Bloomin’s earnings release.
Deno said Bloomin’ would offer transfer opportunities to a large number of impacted employees and severance payments to those it cannot place.
The closures were not a reflection of the performance of individual employees, Deno said.
“A majority of these restaurants were older assets with leases from the 90s and early 2000s,” Deno told analysts.
Aussie Grill, the smallest of Bloomin’s brands, will be hardest hit by the closures.
According to the chain’s Q3 earnings release, the fast casual brand had 14 units at the start of Q4, with seven in the U.S. and seven in international markets.
The chain’s five closures represent a more than 35% drop in unit count for the brand.
Bloomin’ expects to open 40 to 45 new restaurants in 2024, in areas Deno described as “promising trade areas with great potential.”
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Also Read: A Famous Restaurant Chain Now Closes 4 Locations in Florida
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