Just to clarify not all the stores that were part of the first round were "under performing" . A lot had to do with how valuable the real estate was and how fast Macy's can make a quick $$$ or $$$$$! I know for a fact a few were beating plan from LY and were more profitable then thier neighboring stores. Even #1 in thier District/Region! !!! Macy's just has a hard time with developing a business for the long term vs a making a quick million and giving bonuses to those who just sit in an office.
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You cant force someone to shop in a store. It's been known for a long while that even if a store is profitable, it's still not safe from closure. The decision to close a store isn't just based on sales. Conversely, if a store isn't doing well, you could add all the bells and whistles and it still may not do well. I've been down this road before with another retailer.
Most of the closing stores are in close proximity to other go forward Macy's stores. By closing these 66 locations, Tony can make it look like the company strategy is working. Customers from closing stores will start shopping at the nearby remaining locations. This transfer of traffic should prop up comparable sales performance versus last year for the foreseeable future. It will be interesting to see if analysts pick up on this during the quarterly call this year and ask Tony and Adrian about it.
YES! Been with Macy's for many years and have witnessed that they only like the "fast horses" and keep feeding them. Never trying to develop a store that is not that fast or in an affluent neighborhood. Stores would have flourished if given some time, the right assortment and developed Leadership.