Home News Macy’s Stock in Focus After News of Layoffs and Store Closings: Key Levels to Watch

Macy’s Stock in Focus After News of Layoffs and Store Closings: Key Levels to Watch

by SuperiorInvest

Key takeaways

  • The retailer plans to cut approximately 2,350 jobs and close five stores in an effort to streamline costs and curb slowing sales.
  • Macy’s stock broke above a multi-month bearish trend line in mid-November, indicating that many of the challenges facing the retailer could already be built into the price.
  • The current pullback in Macy’s stock could find support at the 50-day moving average.

Macy’s, Inc.

Source: TradingView.com.

Department store retailer Macy’s (M) is in the spotlight after it announced Thursday that it plans to eliminate approximately 2,350 jobs and close five stores in an effort to streamline costs and stem slowing sales. The layoffs will involve staff reductions at the retailer’s corporate office and several stores. “As we prepare to implement a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more agile company,” a memo from the staff cited by CNBC said. The move follows the struggling retailer’s plans to open about 30 smaller stores in malls over the next two years, which it hopes will resonate with suburban shoppers who have avoided big-box malls for their mobile devices and more convenient local options. . The company is preparing to install Tony Spring, head of Macy’s luxury department store Bloomingdale’s, as chief executive in February.

M stock broke out over a multi-month bearish trend line in mid-November, indicating that many of the challenges facing the retailer could already be built into the price. Additionally, the 50-day moving average recently crossed above the 200-day moving average to generate a golden cross buy signal. As the price suffers a pullback, keep an eye on the $17 level, an area of ​​the chart where you can find support at the 50-day moving average.

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