Listen Now: Macy’s Downsizing In Hopes of a BIG Holiday Season
Macy’s wants to increase sales, by decreasing stores.
It’s officially the busiest shopping season of the year and Macy’s is hoping to come out on top. In a recent interview with the Wall Street Journal, the CEO said the department store chain is hoping to grow by shrinking.
The plan is to cut down on merchandise and staff at some of the less productive stores to create a better experience for the customer. The company hopes that by having less items to sort through customers will have an easier time finding what they want and will be more likely to buy.
These smaller locations will also have more self-service options, fewer cashiers and areas to pick up or return online purchases.
So far, Macy’s is testing this idea out at four locations, cutting about one-fifth of the total space. In the Stamford, Connecticut test location, Macy’s has cut the number of employees by forty percent. In the past years, Kohl’s used a similar method and is reporting sales growth while competitors have shut down.
Let’s see if Macy’s can cash in as well.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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