Macy's Is Cutting 10,000 Jobs and Closing 63 Stores as Sales Dip Again

While everyone celebrates Donald Trumps "victory" for persuading Ford from opening a factory in Mexico instead expanding to Michigan, allowing for around 700 jobs to be created, Macy's is laying off 10,000 employees. Putting us 9300 jobs in the hole, given that retail clerks are qualified for working in an automotive factory.

The reason for this is they are now shifting more to online sales rather than in store shopping.

Why pay for the overhead of a brick and mortar store if you can just keep the profit by shipping your clothing from a foreign land and sell it on your website? No need to pay clerks to stock the stores and sell your merchandise.

I predict more of these stores to follow lead, effectively putting hundreds of thousands out of work.

Macy's (M, -8.46%) on Wednesday said would close 63 stores this spring and eliminate 10,000 jobs as the struggling department store chain continued to grapple with weak sales during the holiday season.
The retailer also announced that comparable sales, which include its booming e-commerce business and sales at stores open at least a year, fell 2.1% in November and December, prompting it to slash its full year profit forecast. Shares were down 10% in afterhours trading.
Of the 10,000 jobs being cut, 3,900 will be at stores being closed this year as part of a plan announced in August when Macy's announced it would close 100 of its 730 namesake stores in the coming years. (Macy's Inc also operates the upscale Bloomingdale's chain.) Another 6,200 job cuts will come from streamlining operations and cutting costs so it can focus more on its digital business. Macy's e-commerce was a rare bright spot in a bleak holiday season report: online sales rose by a double digit percentage during the holidays, the company said.

Macy’s Is Closing 63 Stores And Cutting 10,000 Jobs As Sales Plunge Again

Amazon is killing everything.

Macy's needs to adapt or it's going the way of the dodo.

a reply to: TheLotLizard

That's a shame. I like Macy's. I buy most of clothes there and their prices are usually good. My store in Kennesaw. GA isn't closing, so at least that's good.

Unfortunately, most of these large retail chain stores are going the way of the dinosaur, and it's getting harder and harder for brick and mortar stores to compete with the etailers.

What the hell does this have to do with Trump?

Their sales have been declining for years and this was inevitable.
Most higher-end clothing stores have been seeing a decline. Why? People have less spending money because taxes are increasing, healthcare is unaffordable, food prices never declined to pre-2008 levels, and everyone can get their clothing from Walmart or Target, or online.

You want to bring poli-ticks into it?
For what? All I see is a decline from the past 8 years.

Huh.

So the last 8 years of Obama's economy has forced Macy's to lay off 10,000 people and close 68 stores.

Congrats Obama!

I think mall shopping has served its time. I buy as much as I can online. I wish there was a store that had their grocery store shelves online, like a video game where you can see the products displayed. If I were young I would start a delivery service. I can think of all kinds of small businesses right now, off the trend of amazon type customers.

originally posted by: havok
What the hell does this have to do with Trump?

Their sales have been declining for years and this was inevitable.
Most higher-end clothing stores have been seeing a decline. Why? People have less spending money because taxes are increasing, healthcare is unaffordable, food prices never declined to pre-2008 levels, and everyone can get their clothing from Walmart or Target, or online.

You want to bring poli-ticks into it?
For what? All I see is a decline from the past 8 years.

Huh.

Hmm seems like you're triggered a bit aren't you?

I didn't say this was directly related to trump, like you're implying. I'm saying people are congratulating him on creating by influence 700 jobs. In reality people are going to be losing more jobs than he can create, thus creating a useless celebration.

Huh.

originally posted by: grey580
Amazon is killing everything.

Macy's needs to adapt or it's going the way of the dodo.

Not only that, automation of manual jobs people used to do and outsourcing jobs to foreign countries leaving more Americans out of work with no disposable income to spend in these stores which leads to more job losses, it's a vicious cycle which needs to be stopped.

a reply to: grey580

You are woefully ignorant of Trump's modus operandi. # the future. We're bringing back share-cropping y'all! There will be jobs aplenty for us all!

a reply to: havok

I agree..people have A LOT less money About 5 years ago, our income was about 400.00/month less..yet we could go out to eat..buy a little something here and there and never really worried about coming out short..Fast forward today..more income..but we are not even making payday to payday..and we have limited all debt except basic living needs..we have NO cable, no car payments, basic ins..cheapest utilities offered...we have slimmed down so much that we have nothing left to eliminate Most days I sit around wondering where the ##ck we went wrong? It's sad..

Not sure why this is surprising at all. More people are buying online every day.

As the population continues to age, the older folks who typically were the 'in-store' people are being replaced by those of the internet age.

And often when people DO go into stores, it is just to see what they want to buy, and then go find it online for the best price.

The only way that brick-and-mortar stores, whether chains or mom-and-pop, are going to survive is if 1) they have something unique about them to bring people in - and keep them or 2) a local community decides it is better to spend more to help the community than buy cheaper elsewhere.

I just don't think it is an economy thing - it is retailers not keeping up (see Sears/Kmart).

a reply to: MOMof3

Most places offer this type of service already..like Kroger..you can go online and do the shopping and pay..drive up and pick up all your groceries..amazon is also getting ready to do this..only they will have drones to drop the stuff at your home. What about the drive up rotating grocers. They look like gas station pumps..that have rotating wheels with the foods..you choose the items, pull forward and the bags come out like a bank drawer....you then drive off without doing a transaction..you set up an account online to deduct cost..no transaction at POS. It's all going to be so weird..

a reply to: Neopan100

I live in Idaho. We barely have cable or wifi available, infrastructure cost too much. Maybe one day. I and all my senior friends would most definitely use such services. The classical handyman is in great demand also.

originally posted by: MOMof3
I think mall shopping has served its time. I buy as much as I can online. I wish there was a store that had their grocery store shelves online, like a video game where you can see the products displayed. If I were young I would start a delivery service. I can think of all kinds of small businesses right now, off the trend of amazon type customers.

They already have grocery delivery....check out Instacart....used it a few times in a pinch myself.

As for the OP....malls and large department stores have been on their last leg for a while. I see most becoming solely holiday shops open only just before and after holidays in the future. The upkeep alone is tremendous. They are the epitome of gluttonous consumerism with 60-70% of what's on shelves being sent to Marshall's and discount stores after a certain time.

I hate malls and large department stores. I like that people seem to be going to online and small boutique stores now. Most of the really cool areas in Atlanta only have small boutique stores that tend to carry much better quality items for less than these giant retailers.

a reply to: TheLotLizard

Sears and Kmart are closing 150 stores, here is the link!
www.businessinsider.com...

a reply to: Neopan100
8 years ago, I lost my job and unemployment was nearing 10%. There are jobs to be had that pay well RIGHT NOW. IKEA is opening a brand new store up here in Burbank Cali, and I am going to apply! I have a job that pays well, and have been with it for years, but I am thinking of a change.

IKEA, gives workers health care, vision, and dental at just 20 hours a week!

The jobs Donald has saved by the way, are as Trumpitiers put it about Hillary Pay To Play, or in this case Pay to Stay!!! DO not be foolish! These jobs cost millions to keep here, all to make him look good!

a reply to: TheLotLizard

Triggered?
Your useless media buzzwords are meaningless to me, snowflake. (see what I did there?)

Your entire post begins with a mock of the President-elect.
You chose to lead with the first paragraph here:

While everyone celebrates Donald Trumps "victory" for persuading Ford from opening a factory in Mexico instead expanding to Michigan, allowing for around 700 jobs to be created, Macy's is laying off 10,000 employees. Putting us 9300 jobs in the hole, given that retail clerks are qualified for working in an automotive factory.

This post reeks and the opening statement should be put in the Mud Pit.

Had you just stated the facts, without your equating Fords investing back into Michigan to Macy's closing and shutting stores down as Trump related, I may not have said much.

By the way, this:

I didn't say this was directly related to trump, like you're implying. I'm saying people are congratulating him on creating by influence 700 jobs. In reality people are going to be losing more jobs than he can create, thus creating a useless celebration.

Is a contradiction. Yes you did, by simply putting him in the opening post. You could've just posted the facts about Macy's and their closing without one mention of Trump and his "influence" (which I don't buy either).

How about we put the blame where it really belongs. The $15 per hour minimum wage crowd. I've asked before and I'll ask again. Why are the unions pushing the $15 per hour minimum wage, but, are pushing for their members to be exempt from it?

I'm old enough to remember when a "sales associate" at a store like Macy's was a profession. When the associate had to know the products in their assigned area. Now it is someone who glares at you or bites your head off when you ask a question.

Probably 505 of the layoffs are after the holiday cuts.

a reply to: havok

I can't speak for other states, but in Texas, it has nothing to do with Trump.

What it has to do with is failed mall locations. And they are failed because they are, for the most part in sketchy parts of the region. Traffic was way down and loss by shop lifting was way up.