Macy's to cut 10,000 jobs
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Macy's, once the stalwart of American retailers, is to close 68 stores and cut 10,000 jobs after poor holiday sales.
The company currently operates the largest department store chain in the US with a portfolio of 720 stores. Sales fell 2.1 percent in the final two months of the year, resulting in greater costs being cut.
Terry J. Lundgren, the company’s chairman and chief executive, said in a statement that while the trend was “consistent with the lower end of our guidance, we had anticipated sales would be stronger.”
He attributed the decline to “broader challenges” facing much of the retail industry, noted the New York Times.
Macy's isn't the only department store citing lacklustre sales. Kohl’s Corp. on Wednesday also warned of weak holiday profits.
According to the Wall Street Journal shares of Kohl’s tumbled 15 percent in late trading, while Macy’s fell more than 10 percent. The news pressured other retailers, with Nordstrom Inc. and J.C. Penney Co., also trading lower after the market closed.
Read more background on Macy's here.
Photo courtesy of Macy's