Yamamoto Incorporated - Rising Cuts in US Jobs Market

Japan, January 28, 2016 (Newswire.com) - ​Yamamoto Incorporated: Macy’s, the major US retailer has announced it is to shed 4,500 staff and close 36 stores after a dismal holiday season it blamed on the warmer than expected weather and a tightening of purse strings by international tourists.

The restructuring and cost-cutting measures will increase efficiency and restore confidence among the retailer’s shareholders.

Shareholders in Macy's had a particularly nasty 2015 with the price of the shares down by 50% from their high during the year.

Yamamoto Incorporated, Retail Analyst

“Shareholders in Macy’s had a particularly nasty 2015 with the price of the shares down by 50% from their high during the year,” suggested a Yamamoto Incorporated retail analyst.

“Although Macy’s says that 80% of the decline in sales could be attributed to the lack of sales of winter clothing like scarves, boots and coats, we think the malaise has more to do with the shift away from bricks and mortar stores to online shopping,” he explained.

Plans to beef up Macy’s online presence may hint at the company’s acknowledgment of the changing dynamic of the modern-day shopper but the majority of its efforts will still be aimed at streamlining operations and efficiencies at its physical stores.

Yamamoto Incorporated has maintained its view that the jobs recovery in the US economy is set to tip into a decline as employers begin to lay off workers taken on in preparation for a surge in economic activity that has failed to materialize.

“All the data is pointing to a weakening in economic activity, not a strengthening and we believe that is going to become far more apparent as the year progresses,” concluded the Yamamoto Incorporated analyst.