Macy’s CEO Jeff Gennette Says Company Will Become Smaller After Coronavirus Pandemic

Department store retailer Macy’s is feeling the impact of the coronavirus and according to the company’s CEO, will be coming out as a smaller company because of it.

This week CEO Jeff Gennette said, “We are going to emerge out of this as a smaller company.”

Gennette made the comment during a virtual fireside chat with Gordon Haskett analyst Chuck Grom. The chief executive added, “We don’t really know what the ramp back looks like.”

Macy’s expects to see lower volume this holiday season and is still considering whether or not it will close additional locations permanently.

Gennette expects its hundreds of department stores and specialty shops, including Bloomingdale’s and Bluemercury, to reopen in phases.

“This is a liquidity crisis of enormous consequences,” Mark Cohen, former Sears Canada CEO, recently told CNBC.

Macy’s stores have been shut due to the pandemic since March 18. It will open 68 locations Monday, in states including South Carolina and Georgia, where local lockdown restrictions have been loosened. The company is planning to have all of its locations reopened over the next six to eight weeks, provided Covid-19 infection rates continue to taper off.

“Social distancing will be the norm in all locations for the foreseeable future,” said Macy’s.
Shares of Macy’s have dropped over 66% this year so far.

Disclaimer: We have no position in Macy’s Inc. (NYSE: M) and have not been compensated for this article.