(MENAFN) Affected by store closings and other costs, Macy's, Inc., the American holding company that owns department store chains Macy's and Bloomingdale's, logged a 31 percent drop in profits over the previous year's last quarter.
The Ohio-based retailer is facing growing rivalry from online retailers like Amazon.com, which affected its revenue, not to mention the underwhelming holiday shopping season, which was struck by bad weather, didn't help either.
Moreover, the recent expenditure trend of customers consists of spending more of their money on restaurants, spas and vacations, or sprucing up their homes, rather than buying clothes, which also served in undermining profits.
However, Macy's is making a lot of changes to reinvent the company; which has materialized in opening six backstage pilot stores last fall, let alone it's also carving out areas devoted to backstage merchandise at 15 full-price stores.
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