In particular, it is planned to lay off 100 Vice-presidents, and to take other measures through which the total saving should be $ 100 million per year.
Macy’s has taken such steps is not a good life — in the fourth quarter, which is so important for all members of the retail industry, the company has reduced both profits and total sales, and in addition, a decreased turnover of shops available at least a year, a key indicator of the wellbeing of the network as a whole. The results, however, came in slightly better than predicted on wall street, but only because the expected scores were reduced after in January the company reported a slight activity of consumers in the pre-season.
Steady state of the economy and informed attempt to make Macy’s more attractive in the eyes of the buyers led to the fact that, after 3 years of decline, sales in established stores increased. But the situation is still very uncertain.
Macy’s, like other large supermarket chain, at the beginning of the holiday season hoping for a better result, but then the indicators began to deteriorate. It is possible that the retail giants were now less competitive, especially compared to such leaders of e-Commerce like Amazon, due to the fact that consumers are increasingly making purchases online.
“Macy’s is a problem that it was unable to increase its revenues when this has been the best conditions, and in the future will make it still more difficult with the slowdown in the pace of economic development, — said Neil Saunders, managing Director of Retail firm GlobalData. — Therefore, it is necessary as soon as possible to decide how to attract customers”.
Some progress has been achieved through the increase in the number of stores Backstage, where goods are sold at reduced prices — now around the country there are already more than 120 and plans to create 45. In addition, implemented the technology, allowing customers to pay on your own, using, for example, a smartphone, and not to stand in line (only through the use of special application in last year were paid for goods worth over $ 1 billion). In the departments of furniture and cosmetics is increasingly applied virtual technologies with maximum convenience and in the shortest time to select the desired item. And finally, the new loyalty program designed to keep the most long-standing and valuable customers.
As noted by Jeff Kennett, CEO of Macy’s, we are talking about the fashion changes. Over the past few years has been closed more than 100 outlets, and is now about the same number plan to upgrade by installing new lighting and creating additional convenience for consumers. It is also important that the company intends to place special emphasis on the development of activities which bring greatest success — trade clothing, shoes, jewelry and cosmetics.
Meanwhile, as of February 2, the net profit of the network for the year amounted to 740 million dollars, or 2.37 dollar per share. A year earlier, the ratings were, respectively, 1.35 billion and 4.38 USD. 2.5% and decreased total sales — from 8.67 to 8.46 billion dollars, but the final result was a bit better than 8,44 billion that analysts had forecast. And the turnover of stores, have worked at least 12 months, increased by 0.7% for the fourth quarter of 2018 and 2% for the financial year.