American department store group “Macy’s” admitted that due to changes in consumption habits and the increase in online shopping, the number of purchases in physical stores has been reduced, and 1/5 of the group’s store sales have been affected. Weak.
The Wall Street Journal reported that Macy’s plans to lay off about 2,000 employees, accounting for 10% of its total workforce. At the same time, the company will eliminate its headquarters in Cincinnati and concentrate all operations there at its New York headquarters. Macy’s held an investor meeting in New York where it laid out a multi-year plan to return sales to growth. The company confirmed it will close its San Francisco technology office and move it to New York and Atlanta.
Large retailers such as Macy’s, J.C. Penney, and Sears were once the mainstays of American shopping malls. However, under the impact of discount stores such as Amazon and T.J. Maxx, customer flow is increasingly declining. reduce. Jeff Gennette, CEO of Macy’s Department Store, said that the company’s goal is to restore the overall operational vitality and return to the operating status that a high-end department store should have. If managed properly, Messi still has a chance to return to the glory days of the past.
Macy’s will try a new approach, which is to withdraw from shopping malls with low passenger flow and instead set up smaller stores in “Luwan Shopping Center”. Luwan Shopping Center refers to a shopping mall composed of many stores lined up along the highway. This type of shopping mall has a larger flow of people and is easier to attract customers.
In addition, the company will continue to seek to profit from its real estate business and plans to build a new office building comparable to its flagship store in New York’s Herald Square. The plan will incur restructuring charges of up to $480 million. Messi hopes to save about US$1.5 billion every year by 2022, and plans to save US$600 million in 2020, and will invest part of the saved funds into the update of technology and other projects.
