Major US department store Macy’s has announced that it is planning to cut 5,000 jobs in its stores and close seven physical stores. The company is struggling to remain stable and is shedding jobs to try and regain some balance to the company’s finances.
The company has struggled with slow growth. Its major competitor J.C. Penney posted a 3.4% increase earlier in the week and Macy’s has struggled to gain traction despite what it calls “solid” holiday sales. The company’s stock fell 7.1% on the news that it is closing the following seven locations:
- Miami (Downtown)
- The Oaks, Gainsville, Fla.
- Novato (Furniture), CA.
- Honey Creek Mall, Terre Haute, Ind.
- Birchwood Mall, Fort Gratiot Township, Mich.
- Fountain Place, Cincinnati, Ohio.
- Burlington Town Center, Burlington, Vt.
These seven branches are in addition to four that had already been targeted for closure.
Though there is little good news for the staff, it has been said that a liquidation sale will be held as the company looks to move on from the closures. “Looking ahead to 2018, we are focused on continuous improvement and will take the necessary steps to move faster, execute more effectively and allocate resources to invest in growth,” said CEO Jeff Gennette in a statement released on the closures.
The news will be bad for President Trump, though probably not high on his list of priorities given the current climate. But even so, it does seem that Trump’s assertions of astronomical business growth are quite a way off target. While there is little that he can do to affect the rapid growth of competitors such as Amazon, he can help businesses such as Macy’s to compete. So far, Trump has shown little willingness to help physical businesses such as Macy’s take on the internet giants. The slow death of physical shopping may have started before Trump entered office, but for someone who claims to be such a strong businessman, he has done little to improve the outlook for many businesses in the US so far.
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