This page has been archived and commenting is disabled.

The US Consumer Is So Strong, Macy's Just Fired 2500 And Announced The Closure Of Five Stores

Tyler Durden's picture





 

Just out from Macy's, which first said the following: "The 2013 holiday season was successful for Macy’s and Bloomingdale’s as we offered fresh and distinctive merchandise, delivered great value to the customer and provided a robust omnichannel shopping experience... Even in a questionable macroeconomic environment with challenging weather in multiple states, the positive response from our customers during the holiday season is yet another vote of confidence that our well-established strategies continue to work for us." What well-established strategies one may ask? Why the following of course, which was also just disclosed in a separate news release "outlining cost reduction initiatives to support continued profitable sales growth": "Approximately 2,500 employees are expected to be laid off and are eligible for severance as a result of these organizational changes. Other associates are being reassigned with new duties or transferred; some open positions will not be filled."

And just in case the message was missed, "The company is announcing today that it will close the following five Macy’s stores in early spring 2014:

  • Fiesta Mall, Mesa, AZ (159,000 square feet; opened in 1979; 98 associates);
  • Metcalf South Shopping Center, Overland Park, KS (216,000 square feet; opened in 1967; 88 associates);
  • Jamestown Mall, Florissant, MO (200,000 square feet; opened in 1994; 88 associates);
  • Medley Centre, Irondequoit, NY (129,000 square feet; opened in 1990; 96 associates);
  • Fashion Place Mall, Murray, UT (26,000 square feet; opened in 1988; 42 associates).

Luckily, JCP and Sears are both hiring.

What can one say but a truly vibrant economy, and a consumer that has never been stronger.

As for M stock, it's up 6% after hours.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/08/2014 - 17:12 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

bullish. kinda.. entire store was on sale last time i was there.. http://hedge.ly/1bOl5jo

Wed, 01/08/2014 - 17:28 | Link to Comment nope-1004
nope-1004's picture

Slimey that they had to wait until after Festivus to do this.

 

 

Wed, 01/08/2014 - 17:30 | Link to Comment zaphod
zaphod's picture

To be fair this is probably more directly related to the fact that Macy's is a useless store today with nothing worth going to for.

Wed, 01/08/2014 - 17:32 | Link to Comment 0b1knob
0b1knob's picture

JC Penney has yet to announce holiday sales:

http://finance.yahoo.com/news/jc-penney-maintains-fourth-quarter-135304740.html

Perhaps they made so much money its taking them longer to count it....

Wed, 01/08/2014 - 17:49 | Link to Comment El Diablo Rojo
El Diablo Rojo's picture

I ordered t-shirts (4 packs) after the holidays, and they are still back ordered. I am betting better than expected if they don't even have underwear available.

A 2nd and creepy thought came up, what if they went full Venezuela and have locked in the underpriced underwear and they are all headed to Canada/ Columbia?

 

Wed, 01/08/2014 - 17:51 | Link to Comment idea_hamster
idea_hamster's picture

Not one of those locations is a place that Jamie Dimon would piss on as he flew over in his Gulfstream.

In the new normal, you've got to be milking the serfs or blowing the king.  Anyone in the middle just gets crushed.

Wed, 01/08/2014 - 18:11 | Link to Comment Shocker
Shocker's picture

Who's Laying off / Closing??

http://www.dailyjobcuts.com

.

Wed, 01/08/2014 - 18:25 | Link to Comment Headbanger
Headbanger's picture

You Zoo Jorkers can say ta ta to your New Year's parade next year! 

And pleas thank  your nearest fucking Wall Street bankster for it before they vanish.

New York will now become an abandoned derelict like Detroit now that it's been drained of all it's worth.

And then sacked by the scum balls from NEW FUCKING JERKOFF JERSEY!

Enjoy!!

Wed, 01/08/2014 - 20:12 | Link to Comment DaveyJones
DaveyJones's picture

I guess they can rain on their parade

Wed, 01/08/2014 - 21:10 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I literally just came home from a high level meeting where retail was discussed at length, where the latest batch of numbers (i.e. most current & tabulated by a credible company that does specifically that) were distributed and dissected.

2014 is already setting up to be the year of the Bernanke re-leveraging up of consumer debt (now at a new all time record, by the way) HANGOVER BINGE & PURGE.

Stay the hell away from retail ANYTHING, whether brick & mortar or online, with extremely few exceptions. Holiday sales were so epicly bad that it's literally shook insiders to their frosty bones.

Just wait until the full extent of the walking dead zombie retailer news hits (i.e. Sears/Kmart, JCP, RadioShack, CVS, Rite Aid, Best Buy, Wal-Mart - yep, 20% of Wal-Mart's are redundant according to Wal-Mart's own internal study - Discounters such as Big Lots, Ross, TJX, etc.).

2014 is going to be the year where every financial news outlet will be begging Howard Davidowitz to appear on their show.

Bernanke handed Yellen a steaming pile of dung on his hurried rush for the exits.

Run, Janet! Run!

Wed, 01/08/2014 - 21:16 | Link to Comment nmewn
nmewn's picture

If I wanted to destroy whats left of peoples disposable income, what would I do? Ahhh yes, force them to buy something moar expensive leaving them even less disposable income!

Retailers & restaurants hardest hit.

Thu, 01/09/2014 - 00:51 | Link to Comment DaveyJones
DaveyJones's picture

it's almost as if..the middle class is not healthy

Wed, 01/08/2014 - 18:43 | Link to Comment Freddie
Freddie's picture

Gang store.  Catering to Obama voters with EBT cards and illegals.

Wed, 01/08/2014 - 17:13 | Link to Comment FieldingMellish
FieldingMellish's picture

This will somehow translate into lower unemployment.

Wed, 01/08/2014 - 17:21 | Link to Comment Skateboarder
Skateboarder's picture

Macys fires 2500 employees = "The economy adds 2500 jobs." See how that works?

Wed, 01/08/2014 - 17:29 | Link to Comment Winston Churchill
Winston Churchill's picture

Told you Santa had his sleigh loaded with pink slips.

First of many such layoffs.Too much inventory in the system.Add

in Obozocare and what is any businessman going to do.

Hope and change = eat you peas and porridge suckers.

Wed, 01/08/2014 - 19:04 | Link to Comment max2205
max2205's picture

Why not up 20%?

Wed, 01/08/2014 - 17:31 | Link to Comment Rainman
Rainman's picture

Temps are jumping back into the 99 week UE pool. Outstanding !

Wed, 01/08/2014 - 17:54 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Yep.  Cost-cutting efficiencies and selling more with fewer "associates" and fewer stores = "HIGHER PRODUCTIVITY"!!!  Which will then be hedonically substituted into consumers gaining savings, translating into MOAR HIRING...! 

Wed, 01/08/2014 - 17:16 | Link to Comment Shizzmoney
Shizzmoney's picture

Ahem, that's "impacts", not "layoffs".

Great fucking economy we have.

Wed, 01/08/2014 - 18:16 | Link to Comment Headbanger
Headbanger's picture

Because Obama!

Wed, 01/08/2014 - 17:19 | Link to Comment wisehiney
wisehiney's picture

Macy starts the racy. ( to un taper)

Hey you chicks from macys, Guns-R-Us is hiring!

Wed, 01/08/2014 - 17:18 | Link to Comment Dr. Engali
Dr. Engali's picture

Maybe Zero needs to get out there with his teleprompter and do some more CONning...er I meant CONfidence building about the eCONomy.

Wed, 01/08/2014 - 17:18 | Link to Comment rpboxster
rpboxster's picture

That's one small UT store, comparatively.

Wed, 01/08/2014 - 17:19 | Link to Comment 101 years and c...
101 years and counting's picture

great news.  we need to print more.  how about an open thread on the economy is so strong....

 

let me start:  the economy is so strong, the Fed HAS to print $1 Trillion annually.

Wed, 01/08/2014 - 17:27 | Link to Comment Jlasoon
Jlasoon's picture

The economy is so strong I retired from Macy's at 27...

Wed, 01/08/2014 - 17:32 | Link to Comment pods
pods's picture

The economy is so strong, IKEA stopped putting horse in it's meat-a-balls.

pods

Wed, 01/08/2014 - 20:14 | Link to Comment DaveyJones
DaveyJones's picture

quit cantering for laughter

Thu, 01/09/2014 - 04:58 | Link to Comment zhandax
zhandax's picture

Just because it has gone on for so long we are having to recycle one-liners?

Wed, 01/08/2014 - 19:30 | Link to Comment NotApplicable
NotApplicable's picture

The economy is so strong, they let Yellen be in charge of it.

Wed, 01/08/2014 - 17:19 | Link to Comment lostintheflood
lostintheflood's picture

they can close them all, for all i care.  i don't go in their stores and i don't buy their stuff.

"I don’t want to sell anything, buy anything or process anything as a career. I don’t want to sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought or processed, or repair anything sold, bought or processed. You know, as a career, I don’t want to do that."

John Cusack as Lloyd Dobler in “Say Anything” (1989).

Wed, 01/08/2014 - 17:21 | Link to Comment spiral galaxy
spiral galaxy's picture

Well, at least they have Obamacare .........and Congress will undoubtedly extend unemployment benefits to eternity, plus other various assorted entitlements......heck, they're good for life! Matter-of-fact, as per Nancy P., they can now spend their unemployment and severance at Macy's adding to the bottom line!!!  So in one brilliant move, Macys rid themselves of a liability and created an asset ....funded by the taxpayer. 

Wed, 01/08/2014 - 17:24 | Link to Comment Rainman
Wed, 01/08/2014 - 17:22 | Link to Comment Musashi Miyamoto
Musashi Miyamoto's picture

Um... It was the weather.

Wed, 01/08/2014 - 17:23 | Link to Comment syntaxterror
syntaxterror's picture

I just use Macy's stores to "Showroom" for Macys.com. Because prices are lower on Macys.com versus in-store for the exact same items (especially for sales), I only go to Macy's stores to look at an item before purchasing, or to make a return. 

Wed, 01/08/2014 - 18:23 | Link to Comment walküre
walküre's picture

Macy's is for pussies. Are you a pussy? What color is your underwear?

Wed, 01/08/2014 - 20:22 | Link to Comment Jlasoon
Jlasoon's picture

What's underwear. Only pussies wear underwear. Only pussies don't drive made in Merica F150s, only pussies don't get CTE from playing the most amazing non-pussified sport in Merica - Football. Only pussies vote Obama. Fuck pussies, I hate pussies. France = Pussies, Canada = Pussies, latino Mexico = Pussies, whole world pussies. Merica = Non-Pussy !!!!! Fuk-Yea

Wed, 01/08/2014 - 17:23 | Link to Comment A Lunatic
A Lunatic's picture

Sadly Virginia, all this bullshit about Santa Clause is just that, Bullshit........

Wed, 01/08/2014 - 17:37 | Link to Comment pods
pods's picture

I would rather believe in Santa than this load of crap they are peddling.

I mean, at least Santa COULD happen.  Just need a really, really fast sleigh. Like a sleigh with JATO, or a hyper-drive like the millennium falcon.  And stop time, and like, become small enough to fit down a modern chimney and avoid being burned or asphyxiated.

Way easier that the other story.

pods

Wed, 01/08/2014 - 20:19 | Link to Comment DaveyJones
DaveyJones's picture

Santa represents everything about our modern society

He's obese

He's always in the red

He ignores the fourth amendment

he lives in an ivory tower

and he works the shit out of the little people 

Wed, 01/08/2014 - 20:23 | Link to Comment Jlasoon
Jlasoon's picture

Are the little people Asian?

Wed, 01/08/2014 - 20:27 | Link to Comment DaveyJones
DaveyJones's picture

He had thought of moving the factories to Mongolia but the reindeer had a sit in

Wed, 01/08/2014 - 20:54 | Link to Comment Jlasoon
Jlasoon's picture

So all the reindeers are woman? 

Wed, 01/08/2014 - 17:24 | Link to Comment Yen Cross
Yen Cross's picture

   I'm sure it wasn't for a lack of inventory.  aka {cheap Chinese trinkets}

Wed, 01/08/2014 - 17:26 | Link to Comment reader2010
reader2010's picture

Too bad beacuse those Chinese only shop at Tiffancy's.

Wed, 01/08/2014 - 17:29 | Link to Comment rumit
rumit's picture

You didn't mention the 8 stores they are opening. Tell the whole story not just the part that supports your worldview.

http://finance.yahoo.com/news/macy-inc-outlines-cost-reduction-210000638...

Eight new and replacement Macy’s and Bloomingdale’s stores are currently planned and/or under construction, as previously announced.

Wed, 01/08/2014 - 17:46 | Link to Comment Jlasoon
Jlasoon's picture

Notice where the new stores will be opening?

Middle America fucked, tourist traps rejoice. I'm about 30 miles from 

  • University Town Center, Sarasota, FL (160,000 square feet; to open in fall 2014; approximately 175 associates);

This is a brand new shopping mall built from scratch. $400 million. Just look at the demographics of Sarasota and you'll know what's going on.  

Same goes for the rest of the stores. 2 Miami stores, Puerto Rico, Sarasota, Hawaii, Las Vegas <-follow the retirement money.

Wed, 01/08/2014 - 18:25 | Link to Comment walküre
walküre's picture

You know how they can afford to drop $400 million on building a mall, right? Ben pretty much gave it to them.

Wed, 01/08/2014 - 19:33 | Link to Comment NotApplicable
NotApplicable's picture

"Hey buddy, got any MBS?"

 

Wed, 01/08/2014 - 19:06 | Link to Comment max2205
max2205's picture

Sorry.....follow the disability money...fixed it

Wed, 01/08/2014 - 20:25 | Link to Comment Jlasoon
Jlasoon's picture

Actually, everytime I leave my complex I see my money being pissed away left and right.

Wed, 01/08/2014 - 17:43 | Link to Comment wisehiney
wisehiney's picture

In conjunction with the implementation of these cost reductions, as well as of store closings and asset impairment charges, an estimated $120 million to $135 million of charges, of which $50 million to $55 million is expected to be non-cash, will be booked in the fourth quarter of 2013. These charges were not previously included in earnings guidance provided by the company.

Eight new and replacement Macy’s and Bloomingdale’s stores are *CURRENTLY* planned and/or under construction, as previously announced.

Wed, 01/08/2014 - 17:47 | Link to Comment divide_by_zero
divide_by_zero's picture

Only 1 of those 8 is a new store, the other 7 replace nearby locations in old, shitty malls.

Wed, 01/08/2014 - 18:20 | Link to Comment wisehiney
Wed, 01/08/2014 - 18:27 | Link to Comment walküre
walküre's picture

that article is from 12/2011

the recovery that never was....

Wed, 01/08/2014 - 18:35 | Link to Comment wisehiney
Wed, 01/08/2014 - 20:36 | Link to Comment Jlasoon
Jlasoon's picture

Simple solution for Sears, Bring Back the Catalogue "Sears & Roebuck" and start selling the syringe and cocaine combo from the late 1800s. Recovery in 3, 2, 1...

I believe $1.50 could fetch you the whole Heroin Kit; Syringe, heroin & carrying case.

Fuck TVs, bring back the Coca Wine.  

Wed, 01/08/2014 - 21:50 | Link to Comment pupdog1
pupdog1's picture

Don't forget the big sale on laudanum!

Wed, 01/08/2014 - 19:45 | Link to Comment Fíréan
Fíréan's picture

Why are Macy and Bloomingdale employees referred to as 'associates" and not "employees"  ?

Are they not employed by the company, only associated with it through their work contracts ?

Or is this just some new nomenclature used with the specific intent to render the words, and traditional definitions that lie therein, of "employer" and "employee" as obsolete ?

http://finance.yahoo.com/news/macy-inc-outlines-cost-reduction-210000638...

 

Wed, 01/08/2014 - 22:52 | Link to Comment StychoKiller
StychoKiller's picture

More doublespeak, like "Vertically-challenged" = dwarf,

"Testosterone-deficient" = woman, etc.

Wed, 01/08/2014 - 17:32 | Link to Comment dudebum
dudebum's picture

Shit friend of mine works there.

Hope she's ok.

Wed, 01/08/2014 - 17:38 | Link to Comment texas sandman
texas sandman's picture

So, was that shit, a friend......or a shitty friend?

 

Courtesy, the punctuation police.

Wed, 01/08/2014 - 19:37 | Link to Comment NotApplicable
NotApplicable's picture

Well, I got friends in low places.

Right up to the day they got fired from Macy's

Wed, 01/08/2014 - 21:48 | Link to Comment pupdog1
pupdog1's picture

Puncuation can kill.

Let's eat grandma!

Let's eat, grandma!

Thu, 01/09/2014 - 11:50 | Link to Comment JimS
JimS's picture

Shit: a friend of mine works there.......?

Wed, 01/08/2014 - 17:38 | Link to Comment corporatewhore
corporatewhore's picture

I'm afraid the Macy's and Bloomingdale's employees are overqualified to work at Penneys.

Wed, 01/08/2014 - 17:41 | Link to Comment bigkansas
bigkansas's picture

The Metcalf South Mall needed to be torn down 20 years ago. Why it's still standing I have no clue. Must be privately owned. 

http://en.wikipedia.org/wiki/Metcalf_South_Shopping_Center

Wed, 01/08/2014 - 22:39 | Link to Comment quasimodo
quasimodo's picture

Lol, even wiki calls it a dead mall. Few of those here as well. Some of them were lucky enough to be turned into or broken up into new stores that were not there before. At least some of the smaller malls can be re-habed. Those with multiple levels, deep interiors...not so much.

Wed, 01/08/2014 - 17:42 | Link to Comment Trucker Glock
Trucker Glock's picture

Bullish.  Macy's is for poor people.  The new middle class shops at Tiffany & Co., Saks Fif Ave., and Mercedes dealerships.  No channel stuffing necessary.  All's good.  Just ask the FED.

Wed, 01/08/2014 - 17:49 | Link to Comment Jlasoon
Jlasoon's picture

If Macy's is for the poor, 

Goodwill stores are for ...

Wed, 01/08/2014 - 17:54 | Link to Comment Skateboarder
Skateboarder's picture

THE UNTOUCHABLES.

Dun dun dun....

Wed, 01/08/2014 - 18:28 | Link to Comment walküre
walküre's picture

the "new middle class" shops at Tiffany's ????? Huh?

what planet is he from?

Wed, 01/08/2014 - 19:14 | Link to Comment Freddie
Freddie's picture

What middle class?  This new suspposed middle class shops in dumpsters.

Wed, 01/08/2014 - 18:20 | Link to Comment savedbyfreethought
savedbyfreethought's picture

Shopping at a more expensive place instead of having more income is what elevates one from the poor to the middle class ? That is some real progress.

Wed, 01/08/2014 - 17:45 | Link to Comment Rentier
Rentier's picture

Short JCPenneys they going under this next year for sure...lol

Wed, 01/08/2014 - 17:47 | Link to Comment rsnoble
rsnoble's picture

Thing is the few assholes at the top will keep raking in millions after everyone else's demise and will continue that role as long as possible.  Sound familiar?

Wed, 01/08/2014 - 17:51 | Link to Comment Kreditanstalt
Kreditanstalt's picture

What are "associates"?  Hired help?

If I buy something  there, am I an "investor", perhaps? :)

Wed, 01/08/2014 - 17:55 | Link to Comment Skateboarder
Skateboarder's picture

Only if you buy something and return it, because returns = income.

Wed, 01/08/2014 - 17:59 | Link to Comment you can't fix stupid
you can&#039;t fix stupid's picture

Saw around 25 cars parked at JCPenney stripmall store today at noon. I'd guess at least half of them are workers so that leaves around 12 customers total...   maybe everyone has a job and is working?

Wed, 01/08/2014 - 20:23 | Link to Comment trader1
trader1's picture

that, and they prefer online shopping while eating unhealthy food @ home?

Wed, 01/08/2014 - 18:00 | Link to Comment starman
starman's picture

K Mart 225 stores sears 150 JC P? GM, Ford , HP to cut 20 % of. Workforce! Between 2014-2016!

Recover that!

Wed, 01/08/2014 - 18:21 | Link to Comment ZippyDooDah
ZippyDooDah's picture

Everything is fine and we love you.  Now we are releasing 120 wild dogs who were starved for 3 days so we can cleanse the degraded filth who infiltrated our stores without our knowledge.  Then everything will be much better.

Wed, 01/08/2014 - 18:25 | Link to Comment IridiumRebel
IridiumRebel's picture

Mall on Tuesday was D E A D. Sears was giving everything away.

Wed, 01/08/2014 - 20:39 | Link to Comment Jlasoon
Jlasoon's picture

Penney took the $1.99 rack away during the holiday shopping season. Guess what? It's back. Just saw it the other day. A whole section $1.99. This shit is too funny. 

Wed, 01/08/2014 - 18:49 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

So, the demand for goods is so staggeringly high that it is impossible to keep the store shelves stocked; therefore we will have to close 5 stores since it would hurt the bottom line to maintain "empty" stores while waiting for merchandise to be delivered.....

Wed, 01/08/2014 - 18:53 | Link to Comment MeBizarro
MeBizarro's picture

Terrible article that is one-sided and gives you no insight into what Macy's is doing. 

Wed, 01/08/2014 - 19:05 | Link to Comment Frostfan1
Frostfan1's picture

Like so many other articles at ZH, the headline and doom is way off.   None of these malls are new.  I don't know the story but my guess is that all these leases are up (20 year lease for the 1994 one I think) and they get better bang for their buck elsewhere.   Like someone else said above, they're opening stores in other places.   I actually thought maybe one of the ones around me would be on the list but they're probably not at lease expiration yet. 

Wed, 01/08/2014 - 19:59 | Link to Comment pragmatic hobo
pragmatic hobo's picture

only thing that truly matters is how much are Macies spending to buy back shares ...

Wed, 01/08/2014 - 21:43 | Link to Comment pupdog1
pupdog1's picture

Macy's has long been the poster child for hideous customer service.

I recently went to a large reasonably upsacle suburban Macy's to buy a pair of dress socks. I tried to use the credit card that I've had for at least ten years. I was told that I had to give my zip code or they wouldn't process the card, like you sometimes have to do at a gas pump in a really bad part of town. The clerk, and her manager, had this "I hate this job and I hate servin' Whitey" look written all over their faces.

Linking a zip code to a credit card for identification is a violation of their merchant agreement, and a demonstration that this store has become one of the ghetto's favorite shoplifting destinations (sometimes, entire racks of clothes go flying out of this place, according to the local news).

I said fuck you very much and bought my socks at a place that didn't mistake a middle age suburban white dude for an inner city gangster.

I would love to see Macy's just disappear, as Barnes & Noble, Sears, and JCP will soon do.

Wed, 01/08/2014 - 23:57 | Link to Comment Make_Mine_A_Double
Make_Mine_A_Double's picture

On my way into Portland this morning and passed 3 Rivers Mall in Longview WA - a 3rd tier but big for the boonies.

They are tearing down empty portions of it to consolidate the merchants left in the center portion (Sears, JCP, HD).

Now THAT is a sign of the times.

Thu, 01/09/2014 - 04:34 | Link to Comment Rising Sun
Rising Sun's picture

by this time next year, JCP and Sears won't exist

 

Target is taking a beating too

Do NOT follow this link or you will be banned from the site!