Macy’s (M) cost-cutting moves that include eliminating some 2,500 jobs is giving investors renewed hope in the company, with M stock up some 7% pre-market.
“[W]e have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers,” Macy’s CEO Terry Lundgren said in a statement.
Macy’s is closing five stores, consolidating regional management, and restructuring its retail and merchandise planning staff for an estimated cost-savings of $100 million annually.
Macy’s, which also runs Bloomingdale’s, will employ some 175,000 associates in 844 stores following the changes. The company said it plans to keep the eight new locations that remain in the planning stages. (via CNNMoney)
The news came on a day when shares of Macy’s competitor JC Penney (JCP) sank more than 10% after the troubled retailer released a short and vague statement about its sales performance during the key holiday season.
As with other retailers like JCP, Macy’s is still lagging as more and more shoppers use their mobile devices to shop online.
M stock is looking to boom as the market opens today — and Macy’s promised that new positions would be adding positions related to its online shopping retail.
Macy’s has beat back the economic recovery by tailoring its merchandise to local markets, though it still struggles to pull in shoppers who aren’t yet ready to begin fully spending like they did pre-recession.
M stock is up 36% from this time last year.