Macy's, the largest US department store chain, has announced the closure of 100 stores and plans to focus on online trading and digital retail technology, Footwear News reports.
“The plans that we announced are related to our new vision of the role of stores, the quality of shopping, and the realization of how and where we should invest for the further successful development of the business,” said Jeff Genette, president of Macy's Inc. “In the short term, the sales of the top line of our company will be slightly reduced, but all the changes made will allow us to increase sales relatively quickly and reach a higher level of profitability.”
Macy's will close 100 stores throughout the United States, since their availability has not been profitable for a long time - the cost of real estate is higher than the value of the store. Macy's retail network now has 728 outlets. Part of the stores will be closed in the first half of 2017.
According to the president of the company, the closure of 100 stores will allow Macy's to accelerate the development of the omni-channel strategy in the long term - “We will be able to direct more efforts to develop the shopping experience in our stores and strengthen interaction with our customers in all areas of sales.”
The company said that according to the new strategy, the stake will be made on the development of digital technologies. In addition, more new shop-in-shops will appear in Macy's department stores, the package of services under the My Stylist personal shopping service will expand, and emphasis will also be placed on conducting various events in retail for better interaction with customers.
Developing a new retail strategy, today many traditional retail operators are busy. While millennials are becoming major consumers, retailers are looking for ways to get closer to the representatives of this generation who grew up in the era of mobile technology. So in recent years, Macy's has been actively collaborating with IBM to equip its stores with digital technology.
In the future, Macy's and Bloomingdale's will expand the use of technologies such as online shopping, Pick Up Instore will also update its website and applications.
Macy's is one of the largest and oldest retailers in the United States, founded in 1858. The stores of the network are focused on the sale of clothes and shoes, and also stores sell furniture, household goods, bedding, jewelry, and cosmetics.