J.C. Penney Thursday reported same-store holiday sales grew 3.9% thanks to an e-commerce boost and healthy sales of its house labels and gift items. More than 600 other jobs will be cut by eliminating duplications in back office operations and consolidating regional store groups.
Retail consultant Jeff Green, president of Jeff Green Partners, said some shopping center and mall owners will follow Irvine Company's lead and carve up the former Macy's stores into smaller retail spaces. That store is 190,000 square feet and employs 89 people. Analysts expect that more retailers will announce they are lowering store counts more and making additional moves to create leaner organizations. During the same period past year, the firm posted $0.61 EPS. The company plans to open a new Bloomingdale's store in fall 2017 in San Jose.
The 40 locations that will be closed represent about 5% of Macy's overall store count. Tishman Speyeris interested in taking stakes in the flagship locations, Macy's said. Macy's had 166,900 employees at the end of the last fiscal year.
Citigroup Inc. started coverage on shares of Macy's in a research note on Wednesday, October 7th.
However, Macy's also added that roughly 50 per cent of affected store associates are expected to be placed in other positions.
Macy's also operates stores at Summit Mall in Akron and in Stow, where there is a free-standing store on the Kent Road site of Stow-Kent Shopping Center.
"About 80% of our company's year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats, gloves and scarves", he said. The company had expected a drop of 2 percent to 3 percent.
Macy's said same-store sales for November and December declined 4.7% from a year earlier, and it announced job cuts and restructuring. "It's easy instead of going all the way over to 91", said Fran Castor, of Springfield, who usually goes to the Macy's at the Eastfield Mall. The strengthening dollar, for example, is reducing demand from global tourists, whose yuan, yen, and euros can buy less in the United States.
However, like all other retailers, Macy's has contended with the broader changes of consumers' spending habits.