Messi'S Department Store Is Going To Turn Its Energy To Online.

Macys (Messi general store), the largest chain department store in the US, recently announced that the company will close 40 stores, while the number of layoffs is about 4800.

It is understood that the 100 year old Messi department store in the United States has 770 stores, the closure of 40 stores involved in California, New York, Dezhou and other states.

A few days ago, the Wall Street journal also announced the details of the 40 entities that Macys will close.

Among them, the Macys store located in Suburban Square, Ardmore and PA was established in 1930. It is the oldest shop in the 40 stores that will be closed.

For the "closed shop tide," commented that this is closely related to the recent poor performance of Messi department store.

In the second quarter of 2015, net sales of Messi's Department fell 2.6% to 6 billion 104 million US dollars year by year, net profit fell 25.7% to 217 million US dollars, and same store sales fell 1.5%.

In the third quarter of 2015, the company realized sales of $5 billion 874 million, down 5.2% from the same year, and the net profit of the same store fell by 45.6% to $118 million, lower than the market expectations.

"Messi department store's exploration of discount retail and e-commerce channels is not deep, which largely restricts the improvement of company performance."

Relevant analysts pointed out that, of course, Messi grope is still active in the Chinese electricity market.

In August 2015, Messi general store announced the opening of flagship store at Tmall international, becoming the first US Department Store stationed in Tmall international, and expects to sell US $50 million in China in 2016.

This large-scale closure of stores and layoffs can help Messi store save $400 million a year.

The 40 stores will be closed for 8-12 weeks in January 11, 2016.

However, when announcing the "big adjustment", Messi general store also pointed out that after closing the 40 old stores, some new shops will be reopened. The three branches currently identified are located in the city of Hawaii, California, Losangeles and Utah, and will be opened in the autumn of 2016 and the spring of 2017.

In addition, Messi stores will also continue to open 50 discount department stores Macy 's Backstage.

But in the past 2015

(including Thanksgiving Day, black five, Christmas season)

The performance is unsatisfactory.

The industry pointed out that a large part of the reason is that customers' consumption behavior has changed from offline to online, resulting in a 5.2% decline in sales of Messi's department stores in November 2015 and December.

"But on the other hand, the business of Messi's department store has not seen much improvement."

In this regard, Messi Lundgren's current CEO Terry Lundgren said that 80% of the sales decline was due to extreme weather, and the temperature in the United States became warmer than usual, resulting in a decline in consumer demand for cold goods such as coats, sweaters and boots.

In terms of the strategic adjustment of the company,

"In the light of disappointing sales and earnings performance in 2015, we are making adjustments to make our operations more efficient," he said in a statement.

According to USA Today, Messi stores have reduced about 600 logistics staff and 750 customer service staff, and also offered 165 senior managers the chance to leave voluntarily.

In addition, 2710 employees were dismissed because of the closure of 40 physical stores.

By the end of this Wednesday, there were about 163000 employees in Messi's department.