Shares of Macy's, Inc.'s (M – Analyst Report) fell 3.2% in yesterday's after market trading session following the company's announcement of extensive restructuring, including store closures and layoffs. The announcement overshadowed Macy's decent holiday comps report.
Analysts note that though the restructuring measures are impressive and will result in $140 million in annual cost savings beginning 2015, the $100—$110 million cost incurred to implement the same might prove a drag.
The need to be in sync with the changing trends and boost sales has compelled Macy's to adopt restructuring. The company will merge the merchandising and marketing operations of both its stores and online portal into one single entity. The same will also be applicable to its Bloomingdale's brand.
