Macy’s Inc. (NYSE:M) plans to save $550 million by doing 10100 layoffs

According to reports Department-store chain Macy’s Inc. (NYSE:M) stock dropped 13% as it slash profit outlook and revealed plans to cut 10,100 jobs to save $550m.

Macy’s Inc. (NYSE:M) further said that 3,900 jobs would go in 2017 after closing of 68 store, out of a planned 100 revealed last year.

In the meantime, other modifications and reductions in middle management roles will cut down another 6,200 jobs.

All the Department store chains in the US have lately been finding it hard with ever growing pressure from popularity of online retailers and discount stores.

Macy’s (owners of department store Bloomingdales) also announced its profits for the year to 30 January would be less than previously predicted.

The company was predicting profits to fall between $3.15 and $3.40 a share, but has now drop this to $2.95-$3.10.

Meanwhile other US department stores also saw noteworthy share price actions on Thursday.

Another chain Kohl’s stock plunged 19% as it too slashed its profit outlook, while Sears saw its shares surged almost 6% in early trading after it said it would sell its Craftsman tools business to Stanley Black & Decker for $900m.

Nevertheless, Sears also posted weak holiday trading, with same-store sales in November and December dropped by almost 12-13%, and the company also plans to shutter 150 stores.

Furthermore Macy’s reviewed profit outlook followed the chain’s like-for-like sales in November and December saw a drop of 2.1%.

“While our sales trend is consistent with the lower end of our guidance, we had anticipated sales would be stronger,” said Macy’s (M) chief executive, Terry Lundgren.

TJX topped expectation but gave disappointing forecast

Mother company of the likes of T.J. Maxx and other discount chains, TJX Cos., posted better than projected results in the last quarter, however the company’s outlook for the holiday quarter failed to meet predictions.

Following the announcement company’s stock surged 1.1% to $75 in recent premarket trading. Through Monday’s close, the stock has dropped 11% from an all-time high in August.

Looking ahead for the current quarter, TJX gave outlook of per-share earnings of 96 cents to 98 cents, under prediction of $1.02, according to forecasters.

Meanwhile these kind of goods chains, purchase many of its merchandises through closeouts and sells them at cut-rate prices. This strategy has always aided TJX post mostly higher earnings and sales. In contrary, department stores have find it hard as shoppers turn to lower-price rivals and online operators such as Inc.

For the three month period ended Oct. 29, company’s sales at established stores surged 5% that was more than anticipations for growth of 2% to 3%, mostly driven by customer traffic.

Including everything, TJX announced a profit of $549.8 million, or 83 cents a share, down from $587.3 million, or 86 cents a share, year over year. Exclusive of debt-extinguishment charges, pension settlement charges and other items, per-share earnings were 91 cents, beating company prospects for 83 cents to 85 cents.

Moreover TJX revenue surged 6.9% to $8.29 billion while Analysts predicted revenue of $8.22 billion.