Macy’s announced on Thursday that the retailer will be closing around 100 stores in 2017 and will be boosting its online investments.
This closure would account for about 14% of Macy’s stores under the Macy’s brand. In the end, Macy’s will have 666 stores including 38 Bloomingdale’s locations.
Macy’s also operates the upscale Bloomingdale’s stores as well and said it would increase its exclusive products and would prioritize its investments in the stores that offer the highest growth potential.
Many of the stores the company will close will be in early 2017, with the balance closing as leases or other agreements expire or are amended.
The retailer reported their Q2 earnings this week with second quarter profits and sales down. The numbers still beat the Street’s estimates and shares climbed nearly 15% in early trading on Thursday.
The company earned $11 million, or 3 cents per share, in the quarter ended July 30. That compares with $217 million, or 64 cents per share, in the year-ago period. Excluding charges that are related to store closings, the company earned 51 cents. According to FactSet, the estimate called for 48 cents.
“The announcements we are making today represent an advancement in our thinking on the role of the stores, the quality of the shopping experience we will deliver, and how and where we reinvest in our business for growth,” said Macy’s President Jeff Gennette.
Gennette will succeed Terry J. Lundgren as CEO in the first quarter of 2017.
Disclaimer: We have no position in Macy’s Inc. (NYSE: M) and have not been compensated for this article.