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    Messi Department Store Plans To Close More Than 10% Stores To Reverse Sales Decline.

    2016/8/12 12:43:00 32

    Department StoreMessiOnline Shopping

     Macy's

    Largest chain in the US

    Department store

    Company: Messi general store announced on Thursday (August 11th) that it plans to close more than 10% of its stores, which is part of efforts to reverse years of sluggish sales and increase profits.

    According to its second quarter earnings report, the company will close 100 stores early next year.

    Messi closed 41 stores in the last financial year.

    "We believe that in the long run, closing 100 stores is more suitable for company asset allocation," said Jeffrey Gennette, who will be promoted to president next year.

    Investors have been putting pressure on companies to sell real estate because Messi has been working hard to attract customers.

    Messi

    On Thursday, 100 stores generate annual sales of about $1 billion, but some stores are more valuable than real estate sales.

    Messi currently operates 728 stores, including 675 stores across the board.

    Messi said that the salesmen who had been closed down would work in other nearby stores.

    The company did not specify the number of layoffs, but it said it would provide full-time and part-time staff severance payments.

    Spokesman JannaPea did not comment on this.

    Messi said that the company's profits fell from $217 million, or $0.65 to 11 million, or $0.03 / share in the previous quarter.

    Sales fell 3.9% to 5 billion 800 million US dollars year-on-year.

    Investors are clearly optimistic about the news of the company's sale of stores.

    Messi's stock rose more than 14% in early trading on Thursday.

    Although the purchasing power of American consumers has risen since the recession, the economic recovery has largely bypassed department stores.

    Because consumers are more and more fond of discount stores and

    online shopping

    Messi, Kohl, s and other department stores are working hard to adapt to the changing shopping mode of consumers.

    To compensate for the losses, these once brilliant retailers have sharply reduced prices.

    But some retail experts believe that a constant discount will eventually hurt department stores and, in some cases, damage the brand in the store.

    Conlumino retail analyst Neil Saunders said, "closing stores is a good idea, but that is not enough to save Messi.

    We encourage Messi to see this as part of his pformation and turn the savings from closing stores to the remaining stores.

    Messi said that the company will invest in "improving the number of stores and digital sales tools that are being operated", including increasing the number of suppliers' stores, personal style services and licensing agreements.

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