NOTTINGHAM, MD—Macy’s announced on Tuesday that the chain would close 125 stores over the next three years, nearly a fifth of its total locations.
The company also plans to cut 2,000 corporate jobs as it shutters offices in San Francisco and Cincinnati.
The department store chain said it will likely exit shopping malls, and instead focus on opening smaller stores located in strip centers.
“We have a clear vision of where Macy’s, Inc. and our brands, Macy’s, Bloomingdale’s and Bluemercury, fit into retail today. We are confident in our Polaris strategy, and we have the resources required to return Macy’s, Inc. to sustainable, profitable growth,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams. Over the past three years, we have shown we can grow the top-line; however, we have significant work to do to improve the bottom-line. We are confident the strategy we are announcing today will allow us to stabilize margin in 2020 and set the foundation for sustainable, profitable growth.”
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work. This will be a tough week for our team as we say goodbye to great colleagues and good friends. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment,” continued Gennette.
The company’s announcement went on to state that Macy’s plans to close approximately 125 of its least productive stores over the next three years, including approximately 30 stores that are in the process of closure now.
These 125 stores currently account for approximately $1.4 billion in annual sales.
The company has not yet revealed exactly which stores will be closing.