Macy’s CEO: $10 billion in sales are up for grabs because of retail bankruptcies – CNBC

Macy’s chief sees $10 billion in sales ready for the taking due to this of the flood of retail bankruptcies due to this of the coronavirus pandemic. 

“You seek for obvious manufacturers as of late which would possibly be both going to Chapter 13 or Chapter 11,” Chief Government Jeff Gennette stated Thursday all the scheme through a digital fireside chat with J.P. Morgan analyst Matt Boss. “Effectively we’ll search at that very fastidiously reckoning on the emblem … and with the blueprint.” 

“We seek for there’s about $10 billion price of quite lots of that’s up for grabs correct now per what’s going on on with the aggressive local weather,” he stated. Without offering specifics, he stated Macy’s would possibly unprejudiced add categories in its stores per what a majority of these distressed companies’ broken-down customers would possibly be searching out for.

He stated Macy’s aggressively went after Bon-Ton’s broken-down prospects and workers, when the division retailer chain liquidated its 200 locations in 2018. 

Already all the scheme throughout the pandemic, division retailer chains Neiman Marcus, Stage Shops and J.C. Penney occupy filed for economic atomize protection. Gordmans’ owner Stage Shops would possibly liquidate if it does no longer fetch a purchaser. Penney is planning to close about 30% of its stores, or about 240 locations, as a part of its restructuring. Nordstrom is shutting 16 stores completely. 

Additionally, home items chain Pier 1 Imports launched earlier this week this would possibly also be liquidating its complete enterprise, after it used to be no longer ready to search out a purchaser in economic atomize court. 

Gennette made the feedback after Macy’s reported preliminary first-quarter sales and earnings figures. It’s staring at for to file an working loss of $905 million to $1.11 billion, in contrast with win profits of $203 million a Twelve months within the past. The retailer has forecast first-quarter sales to be within the differ of $3 billion to $3.03 billion, down from $5.50 billion a Twelve months within the past. 

Macy’s additionally would possibly unprejudiced must close more stores completely due to this of the Covid-19 disaster. 

Earlier this Twelve months, it stated it used to be planning to close 125 stores over the subsequent three years. On Thursday, CFO Paula Mark instructed Boss the division retailer chain used to be taking a “laborious search” at its precise estate and these three-Twelve months plans. 

Macy’s shares had been up about 1% Thursday. The inventory has fallen about 70% all the scheme throughout the previous 12 months and has a market trace of about $1.6 billion. 

—CNBC’s Amanda Lasky contributed to this reporting.