Macy’s to close 125 stores, shed 2,000 corporate jobs
Macy’s announced Tuesday it would be shuttering 125 of its least productive stores within three years, cutting 2,000 corporate jobs and closing its offices in Cincinnati and San Francisco, leaving New York as its sole headquarters.
The 125 stores, which includes the 30 store closures announced last month, account for about $1.4 billion in annual sales.
Macy’s operates nine stores in Nevada, but it’s unclear if those locations will be closing. The company did not return a request for comment.
The department store chain said in a press release the move is part of a new three-year plan to boost profitablity and cash flow. Chief Executive Jeff Gennette is expected to make a formal announcement Wednesday morning during the company’s annual investor meeting in New York.
“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,” Gennette said in a statement. “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.”
The retailer said it would explore new store formats, which will have a smaller footprint and be located in off-mall, lifestyle centers. The first iteration of this concept, called Market by Macy’s, opens this week in Dallas. There’s also plans to grow its outlet store, Backstage, by opening another 50 Backstage store-within-store locations this year and seven freestanding Backstage stores, according to the company’s release.
Macy’s will operate about 400 stores and 40 Bloomingdale’s stores as well as beauty retailer Bluemercury, which has about 170 locations including one in Las Vegas.
Contact Subrina Hudson at shudson@reviewjournal.com or 702-383-0340. Follow @SubrinaH on Twitter.