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Macy’s to close seven locations, lay off about 5,000 people

Investors bet against the retailer in a big way even before the holiday season

(Credit: AshokaJegroo/Wikimedia Commons, back; Pixabay, front)
(Credit: AshokaJegroo/Wikimedia Commons, back; Pixabay, front)

Despite a holiday season that saw an improvement in sales — 1 percent increase — the long-standing department store announced last week it would be shuttering seven stores.

The store expects same-store sales to be down up to 2.7 percent, while the company’s total sales are expected to be down nearly 4 percent, reports the Financial Times.

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The silver lining for consumers is that liquidation sales start next week, but the closing locations mean 5,000 jobs will disappear — yet another casualty to brick-and-mortar that hasn’t been able to capture the attention of shoppers who increasing buy online.

The move isn’t coming out of the blue to some investors however. Macy’s was the most shorted retailer ahead of the holiday season, according to the Times.

[FT] — Erin Hudson

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