Macy’s may close up to 40 stores as it ramps up e-commerce efforts
September 9, 2015 01:07 PM
(Bloomberg)—Macy’s Inc., the largest U.S. department store company, plans to close as many as 40 stores early next year as it trims costs and works to improve e-commerce operations.
The stores set for closure represent about 1% of the company’s sales, Cincinnati-based Macy’s said Tuesday in a statement. The retailer, No. 7 in the Internet Retailer 2015 Top 500 Guide, said the exact locations will be announced later, after final decisions have been made.
CEO Terry Lundgren is experimenting with low-priced outlets and working to improve Macy’s online business as mall traffic dwindles and shoppers search for deals. In 2014, Macy’s had Internet Retailer-estimated web sales of $5.4 billion, according to Top500Guide.com data. The retailer also is under pressure from hedge fund Starboard Value to extract more value from its real estate holdings.
Macy’s, which does not break out online sales, is expanding its e-commerce presence in China and will open a pilot site on Alibaba Group Holdings’ web shopping portal Tmall.com.