Macy’s Stock in Spotlight After News of Job Cuts, Store Closings—Key Levels to Monitor

Macy’s, Inc.

Department store retailer Macy’s (M) is in focus after it announced Thursday that it plans to cut roughly 2,350 jobs and close five stores in an effort to streamline costs and stem slowing sales. The layoffs will see staff reductions at the retailer’s corporate office and across various stores. “As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company,” a staff memo cited by CNBC said. The move follows plans by the struggling retailer to open around 30 smaller stores in strip smalls over the next two years, which it hopes will resonate with suburban shoppers who have shunned large malls for their mobile devices and more convenient local options. The company is getting set to install Tony Spring, head of Macy’s upscale department store Bloomingdale’s, as CEO in February.

M shares broke above a multi-month downtrend line in mid-November, indicating many of the challenges facing the retailer could be already baked into the price. Moreover, the 50-day moving average has recently crossed above the 200-day moving average to generate a golden cross buy signal. While the price undergoes a retracement, keep an eye on the $17 level — an area on the chart it may encounter support from the 50-day moving average.