Macy’s (M) is up against the same hard rock as other large retailers who cater to the middle class, Sears (SHLD) and Nordstrom (JWN). Sales are being crippled by the recession and there are simply too many stores in too many malls and on too many street corners.
Macy’s (M) may layoff as many as a thousand people next week.
According to The New York Post, "The giant department-store chain is expected to announce next week that it’s consolidating its regional operating divisions, sources said, and could lay off hundreds, and possibly thousands, of workers."
Even that may not be enough. Macy’s has 853 stores and 182,000 employees.The company’s same-store sales were down 4% in December and revenue fell 4.7% from the same month a year ago, hitting $4.4 billion. In Macy’s last reported quarter, it only made $68 million in operating income on $5.5 billion in revenue.
Cutting one or two thousand people will not solve the retailer’s troubles in an environment which is this vicious.
Douglas A. McIntyre
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