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Macy’s to cut 3.5% of its workforce, close 5 mall anchors amid buyout offer
Macy’s is making headlines in the retail world, and here’s the scoop in a nutshell: Arkhouse Management’s bold $5.8 billion bid to take Macy’s private has raised eyebrows. Macy’s isn’t jumping on board just yet, mainly due to concerns about the financing of the deal. This isn’t just about the big bucks; it’s a sign of the big shifts happening in retail.
In a major move, Macy’s is saying goodbye to about 2,350 of its employees, roughly 3.5% of its non-seasonal workforce. This is part of their strategy to streamline operations, which also includes shutting down five stores. These cuts are a response to the changing retail landscape and consumer behavior.
Our data at pass_by tells its own story: Macy’s is seeing less foot traffic. There’s been a -2.49% drop year-over-year, and a significant -6.82% decrease during December – usually their busiest month. Even Black Friday week saw a -5.24% dip compared to last year. These numbers are loud and clear – shopping habits are changing, and traditional retailers need to step up their game.
For us in retail, CRE, and operations, these are more than just numbers; they’re a wake-up call. Macy’s strategy, balancing in-store enhancements and digital upgrades, shows they’re trying to keep pace with customer expectations. But it also opens up a bigger conversation about the future of retail jobs and the skills that will be most valued.
Macy’s current situation is a real-time lesson for the retail industry. It’s a reminder for all of us in the field that staying ahead of consumer trends and being ready to pivot is key in this fast-evolving market.
Retail Shrinkage – A Growing Problem For Operations
Big retail names like Target, Nike, and REI are shutting their doors in Portland, Oregon, and it’s not just about a crime wave – it’s shining a spotlight on a major retail challenge: shrinkage.
Shrinkage – the industry term for losses due to theft, errors, and the like – has always been on retailers’ radar, but now it’s a burning issue. In Portland, the crime surge is hitting hard. Nike’s closure came after repeated thefts. REI found itself facing unprecedented theft levels, leading to its decision to close up shop. Target’s closure of three stores follows the same troubling trend. This isn’t just a local issue; it’s a national retail headache.
But it’s not all about crime. Portland’s Economic Development Director Andrew Fitzpatrick hints at a bigger picture: changing consumer habits and business strategies are also playing a part. The post-pandemic rise in online shopping is forcing physical stores to rethink their role and strategy.
For those in store operations, this is a call to action. Tackling shrinkage now means looking at the whole picture – beyond just ramping up security measures. It’s about adapting to a retail world that’s constantly changing. This means boosting in-store security, smart use of tech for inventory management, and building solid relationships with local authorities and communities.
Other news
5 ways the pandemic is still impacting retail
The disease outbreak is no longer an emergency, but some of the adaptations retailers made during its height endure — for better or worse.
Black Friday Recap 2023: Physical Retail Trends – A Comprehensive Study of 5-Year Foot Traffic Data
This report uses foot traffic data for the last 5 years across the US during the Black Friday shopping period to give insights on on how physical shopping trends have changed during the last 5 years.
US clothing retail enjoys 3% surge in ‘record’ 2023 holiday season
The holiday season, defined by NRF as 1 November through 31 December, saw online and non-store sales increase by 8.2% to $276.8bn, surpassing the NRF’s forecasted growth of 7% to 9%.
Kering buys significant Fifth Avenue property for US $ 963 million
Kering, a French luxury fashion brand, recently announced its acquisition of a New York City building with multi-level premium retail spaces for US $ 963 million.
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