Macy’s to Hire Less for the Holiday Season

Macy’s Inc. (NYSE: M) announced that they will hire a 20% increase of employees during the holiday shopping season to staff distribution and warehouses that supports online business but lowers the total holiday hiring as a whole. 18,000 holiday workers are to be employed to complete online orders which include shipping and packaging which is an increase of 3,000 from last year but total hiring for the holiday season will drop from 83,000 last year to 80,000 for this year while operating 70 fewer stores than the year prior.

Competitors such as Target announced that they would hire 43% more seasonal workers which totals to 100,000 for the holiday season which was the first time in 5 years that the company increased the number of holiday employees after reporting a jump in store sales for the first time in more than a year. Retailers are usually expected to hire 35% more workers this holiday season to fill positions at distribution centers as well as other services such as doorstep delivery and order-online-pick-up-in-store.

Macys has decreased the number of permanent employees by almost 16% over the past five years and plans to close 100 stores by the end of 2017. Last month, the company repeated their decline in sales for the fiscal year ending in January of between 3.2% and 4.3% as well as a decline in store sales of 2% to 3%.

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