Macy's plans to lay off 2500 people

January 8, the United States department store representative Brand Macy's announced plans to lay off 2500 people and close its 5 underperforming chain stores.

It is noteworthy that at the same time as the physical shop layoffs, Macy's will be in the online retail sector to increase the hiring of large numbers of staff to enhance and Wal-Mart, Amazon and other online retailers competitiveness.

It is reported that this part of the staff accounted for 1.4% of the total number of employees, after the layoffs, Macy's can save $100 million a year, but the cost of the job cuts will reach 120 million ~1.35 billion dollars. However, Macy's has also won investor support for the decision to boost online retailing, and Macy's shares surged 5% per cent on the day of the news.

It is understood that Macy's in the United States opened 840 department stores, 2012 total income of 27.7 billion U.S. dollars. The company said sales rose 3.6%, including online retail and physical stores, during the Christmas period in 2013 11 and December, plus a 4.3% increase in same-store sales by third-party franchises. Although the performance is relatively good, but this increase and online retail still have a certain distance. Based on this, the Entity department stores have to adjust their response.

Like the U.S. Department stores, the current domestic department stores are not good days, then, domestic enterprises will be similar to Macy's adjustment, worthy of concern.

There is a point of view that, in response to the impact of the electricity dealers, the U.S. Department store entities and the Chinese department store companies to take a similar measure: the development of their own electric platform, the implementation of Wal-Mart-represented O2O strategy and the difference in goods and experience.

A long-time domestic and foreign retail industry analyst told The Daily Economic news reporter, and the Chinese market situation is different, the foreign comprehensive electricity quotient is relatively few, thus the department stores have the leeway to develop the electric business. In addition, mobile electric business marketing is also the Chinese department stores in the active use of tools.

Guangdong Province Circulation Industry Chamber of Commerce Executive President Huang Wenjie said, compared to Macy's, the direction of the transformation of domestic department stores more flexible, similar to the use of mobile power companies in the reverse attack, in this regard domestic enterprises may become an international paradigm.

CIC Consultant Retail Industry researcher Du Yan Macro said that in the future, the domestic layout of a broader chain store industry will also shrink the physical stores, overweight online.

Du Yan pointed out that the electrical and commercial enterprises should not be regarded as absolute competitors, in fact, they have a competitive and complementary relationship. In the current market environment, department stores still have more consumer audiences, electric dealers can not completely replace the department store, but the business and department stores overlap part of the department store caused a greater impact. "The department store carries on the O2O, unifies the line, the offline superiority, is a more ideal development way." ”