Now that the holidays are over, the big names in retail who had a tough fourth quarter are going to have to make big cuts. Based on early numbers, some of these retailers would include Sears (NASDAQ: SHLD) and Gap (NYSE: GPS). One operation that was hoping to have at least a modestly good season was Macy's (NYSE: M), but now It looks like that did not work out.
If Macy's has to close stores and restructure, it probably means that most operators who cater to the mid-priced range of buyers are in trouble. It looks like offering sharp discounts on inventory may not have been nearly enough to help them.
According to Reuters, "Macy's Inc is expected to announce as soon as Thursday it will close 10 locations." Since investors don't know which Macy's store will close and how large they are, it is impossible to know the exact impact the moves will have in terms of cost savings.
By some estimates, retail store closings will hit over 70,000 in the first half of the year.
The guys who did not make money in the fourth quarter will start shuttering before the end of this month.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-08-2009 @ 1:30PM
redwolf7782 said...
Bizjournals.com lists stores to shut are in Los Angeles; Colorado Springs and Westminster, Colo.; West Palm Beach, Fla.; Hawaii; Indianapolis; Brooklyn Center, Minn.; St. Louis; Natrona Heights and West Mifflin, Pa.; and Nashville, Tenn.