It’s just 11 days into the New Year, and some of the biggest retail stocks in the country have announced major store closings due to dismal holiday season sales and the continued shift to online shopping.
One of the biggest announcements came from retail stocks bellwether Macy’s Inc (NYSE:M), which — after reporting a 2.1% drop in comparable sales for November and December and slashing its full-year profit forecast — is closing 63 stores this spring, eliminating 10,000 jobs in the process.
Of the total jobs being cut, 3,900 jobs will be at stores being shut down, already part of a plan announced last August to close 100 of its 730 namesake stores. An additional 6,200 jobs will be eliminated due to streamlining and cutting costs.
Retail Stocks Are up Against the Cage
Fellow retail stock Sears Holdings Corp (NASDAQ:SHLD) announced it would close 109 Kmart stores and 41 of its namesake Sears outlets, in addition to news that it would sell its iconic Craftsman tool brand to Stanley Black & Decker, Inc. (NYSE:SWK). The company did not say how many workers would be affected; SHLD closed 78 stores last year, and over 200 in 2015.
CVS Health Corp (NYSE:CVS) recently outlined its long-term growth strategy, which includes closing 70 stores in the next few months as well as a cost-cutting plan that would bring in $3 billion in savings from 2017 to 2021.
Women’s clothing retailer The Limited, based in New Albany, Ohio, closed all of its brick-and-mortar stores this past weekend, but will continue to operate online only. The company operated about 250 mall-based stores in 2016, and the closings will affect roughly 4,000 jobs. Over the past several weeks, The Limited started winding down its business, heavily discounting its product up to 70% to 80% with signs exclaiming “Everything Must Go!”