The gated shopping mall is seen to close due to new California state restrictions during the global coronavirus disease (COVID-19) outbreak in Carlsbad, California, USA on July 14, 2020.
Mike Blake | Reuters
Macy’s said Thursday it is reconsidering the closure of the approximately 60 remaining open stores from a batch of 125 that were slated to close by 2023.
However, the company said it plans to announce the closure of 10 businesses in January and will provide more information on these locations in the near future.
“The delayed closings of some stores allow us to maintain a physical presence in the market, which is critical to our revenue growth,” CFO Adrian Mitchell told analysts during an earnings conference call. “The numbers are higher in markets where we have stores.”
Macy’s is testing out-of-mall malls and smaller establishments as it closes its larger establishments assigned to traditional malls. Mitchell said these discoveries resulted in strong sales that exceeded the company’s expectations. He said the department store now sees a “clean path” with shopping malls.
The additional closings were announced as Jana Partners acquired a stake in the department store business. An activist investor is pressured Macy’s to separate its e-commerce from its stores, hoping to get a higher rating than Macy’s today.
Macy’s CEO Jeff Gennett said Thursday that the company is working with consulting firm AlixPartners to consider all options for its digital operations.
“We also recognize that the marketplace places great value on pure e-commerce,” Gennett said. “And as we look at the situation today, we are conducting additional analysis that can help shape our long-term strategy to further unlock Macy’s value.”
He said the company will share more details on its findings following the AlixPartners review.
Macy’s closed up 21.1%, at one point reaching a three-year high of $ 37.95 after the company beat analysts’ expectations for third-quarter earnings and sales and raised its full-year forecast.