The department store operator is hiring fewer workers overall for the holiday shopping season but boosting the number of workers who'll fulfill online orders. Fred Katayama reports.
Macy's will hire 20 percent more workers this holiday season to fulfill online orders. That's an increase of 3,000 workers for its distribution and warehouses. But since it now runs 70 fewer stores than it did last year, the department store operator will cut overall seasonal hiring by about 4 percent to 80,000. Large chains like Macy's have been investing in their online businesses while shutting stores and cutting jobs to compete against internet retailers like Amazon. Moody's senior analyst Christina Boni said, "E-commerce by our estimates will grow at a double digit pace which seems commensurate with the increase that Macy's is employing to meet the demands for the holiday season." Seasonal hiring plans give Wall Street a read into retailers' sales expectations. The year-end holiday shopping season is key because it accounts for nearly a third of annual sales for retailers. It's all the more important for Macy's because it forecasts a drop in sales this fiscal year. Earlier this week, rival Target disclosed plans to hire 43 percent more seasonal workers for the holiday rush. It'll be the first time in five years that the retailer will boost the number of holiday workers.