Macy’s (NYSE: M) has announced plans to cut 5,000 jobs as well as closures of 7 recently opened stores and other cuts at remaining locations. The retailer’s holiday sales reported a 1.1% increase but still aims to reduce costs after a stock drop of 7.1% to $23.54. The 7 new locations that will be shut down include Downtown Miami, The Oaks, Novato (Furniture), Honey Creek Mall, Birchwood Mall, Fountain Place, and Burlington Town Center. In addition, 4 other store closures are expected to take place at the Laguna Hills Mall, Westside Pavilion, Stonestown Galleria, and Magic Valley Mall locations. These plans were previously announced back in August 2016 aiming to close 100 stores with a total of 81 to 100 locations currently revealed. 5,000 job cuts are also expected to happen at closures and reductions at remaining locations with the addition of limited jobs in certain stores to properly staff business.
Macy’s is targeting focus on continuous improvement to execute more effectively and allocate resources to invest in growth. The retailer’s active apparel, shoes, dresses, coats, beauty products, fine jewelry, as well as other products reported strong performance with digital sales surging by double digits. Beginning on January 8, liquidation sales will take place and will last for 8 to 12 weeks.