Macy's Store Closures and Financial Challenges
Macy's plans to close 150 locations by 2028, with 65 stores closing by the end of 2024, aiming to become more profitable and reduce the total number of stores from 1,100 in 2008 to 350. Sales dropped by 2.4% in Q3, and an employee hid up to $154 million in expenses. Shares dropped by 12% after the earnings call.
Key Points
- Plans to close 150 Macy's locations by 2028
- Sales dropped by 2.4% in Q3
- Employee hid up to $154 million in expenses
Pros
- Efforts to become more profitable
- Strategic closures to streamline operations
Cons
- Negative impact on employees and communities
- Revenue decline and share price volatility