- 5 billion not million being cut from 800 stores is a cut of 1.8 million per store . That is basically nuking everyone in a store. If you cut a store manager that is only 100k off the tab. If you get rid of OVs that’s only 60-70k off the tab. You can see how bad they need to cut to keep things . You need to close stores to free up cash to keep other stores alive. Job cuts will be a blood bath. You also have to keep the packages in mind which will cost millions. If this Xmas is bust which it looks like it’s is in most stores ( not all ) I don’t see it turning around. Unless they get bought out
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Some stores that are still in operation might be due to the fact that the company owns them. Financially better to have them sell junk than close for good. Thoughts anyone?
No matter how they slice it, 1.5 Billion is a ton of savings. Payroll is always the largest expense in any organization. I would guess you will see another re-organization of positions, neighborhood stores will close or go dark (all of them) in 2021. Perhaps other stores that were not on the list may go dark as well. Remember that the CEO said they have 'modeled closing ' in the event that they need to do more, and also stated 'they will be a smaller company' earlier in the year. Staffing will be at it's lowest point anyone has ever scene. Look for more severance packages for some, and more responsibility for those that remain.
- 5 billion is yet to be cut. The 5 billion was the total loss for 2020. Xmas is a bust so expect massive cuts come Jan / feb. also more dark stores . No more store manager or operation / visual.
How much do did they spend on the parade?
- 5 billion cut starts 2021-22.
It won't all come out of stores, so your math is way, way off.
Closing a store gets rid of salaries etc. but may not get rid of a lot of expenses attached to the structure especially if Macy's owns or leases it. Until that building is sold or lease exited still a lot of $ being spent. Unless, of course Chapter 11 is declared...
Cutting store managers is only 100K of the 'top' ? I don't think so.
Unless you are a place like Target or TJ Maxx, brick and mortar stores are going away soon and fast.
- 5 billion was from the 125 stores that they already closed/or are in the process of closing isn't it??
will the Captains go down with the ship???