Macy’s to close 3 local stores, 273 employees to be laid off

The strong showing during the crucial holiday shopping season comes in contrast to rival Macy’s Inc., which on Wednesday said it would slash thousands of jobs and shutter about 40 stores after existing-store sales dropped 4.7% in November and December.

A strong United States dollar, low spending by tourists, warm weather and a glut of unsold inventory are being blamed for its disappointing performance over the key winter holiday season.

In a statement, the company’s CEO Terry Lundgren explained that the holiday selling season was challenging for the retail industry.

“Final clearance sales at the following Macy’s stores closing in early 2016 will begin on Monday, Jan. 11 and run for between eight to 12 weeks”.

There will also be 50 Macy’s Backstage locations, many of which will be located inside current Macy’s stores, to compete with off-price stores like TJ Maxx, The AP reported.

Macy’s also noted that consumers are drifting away from department stores when looking to buy clothing and that has cut into the store’s bottom line as well. It said that the warm weather was the biggest culprit.

Despite its setbacks, Macy’s shares climbed 2.4% on the stock market today.

The Akron location on Brittain Road, near the Cuyahoga Falls border, is one of two stores in OH that Macy’s will close.

Macy’s announced Wednesday it is going to layoff over 4,350 employees across the country, closing 36 stores in the spring. Online stores have also revolutionized shopping habits, persuading shoppers to expect more discounts compared to what brick-and-mortar retailers can offer.

Mr Lundgren added that the store’s website saw orders up 25% from the previous year.

Macy’s is also extending its overseas reach, with new Macy’s and Bloomingdale’s stores in Abu Dhabi, United Arab Emirates, which are expected to open in 2018.

On the cost-efficiency side, beginning in early 2016 the company will reduce SG&A expense by approximately $400 million while still investing in growth strategies, particularly in omnichannel capabilities at Macy’s and Bloomingdale’s.

The department store operator’s shares rose 2.8 percent to $7.20 in premarket trading. According to the company, it is looking to eliminate an average of three to four jobs at each of its 770 stores.