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Macy’s and J.C. Penney announce closure of stores

Jan 9, 2015 United States
Macy’s and J.C. Penney announce closure of stores
The two US-based giant retailers announced they are shrinking their physical distribution network, by closing some of the stores currently in business
Macy’s plan includes closing 14 stores and open two new locations, resulting in annual savings of roughly 140 million US dollars. According to the US-based retailer this is part of a “series of initiatives to evolve its business model and invest in continued growth opportunities as consumers change the way they shop. Actions include a restructuring of merchandising and marketing functions at Macy’s and Bloomingdale’s consistent with the company’s omnichannel approach to retailing, as well as a series of adjustments to its field and store operations to increase productivity and efficiency.”

“We must continue to invest in our business to focus on where the customer is headed — to prepare for what’s next”, stated Terry J. Lundgren, Macy’s Chairman and Chief Executive. Macy’s added that another part of the plan for the new year includes creating a team within the company to explore potential opportunities for a Macy’s off-price business, and continue to progress with digital retailing, including further developing the technology, speed and customer experience of macys.com and bloomingdales.com as they are accessed via desktop, smartphones, tablets and apps. In 2015, Macy’s expects to grow its San Francisco-based digital technology organization by hiring more than 150 people.

Once all of these changes have been implemented, Macy’s, Inc. will operate about 830 stores in 45 states, the District of Columbia, Puerto Rico and Guam.

In a separate announcement, J. C. Penney said that it would close about 40 stores this year and cut about 2 250 jobs. Most of the stores will close by April, the Texas-based department store operator said. The announcement occurred only after a day the retailer announced same-store sales rising by 3.7% during the high period of the holiday season.

International analysts are claiming these are the preferable cutting costs options for retailers like J.C. Penney who face increasing online purchases.

Macy's is a US-based mid-range chain of department stores owned by multinational corporation Macy's, Inc., which owns another company, the upscale Bloomingdale's. It operates more than 800 department stores locations in the continental United States, Hawaii, Puerto Rico, and Guam.

J. C. Penney and Company, Inc. is a chain of American mid-range department stores based in Texas. The company operates more than 1 000 department stores in all 50 US states and Puerto Rico.

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