A Macy’s department store near you may be closing soon.
On Wednesday, the retailer giant announced that it will be shuttering 125 of its stores over the next three years, starting with stores in malls, as the result of a spike in online shopping. According to USA Today, Macy’s will also be eliminating nearly 2,000 positions, which makes up 9% of its corporate and support staff.
Time reports that the brand will also shut down its Cincinnati office, one of the company’s headquarters, and its San Francisco office to move all headquarter roles to New York City.
“We are making deep cuts that impact every area of our business,” Macy’s CEO Jeff Gennette said at Macy’s Investors Day on Wednesday, according to USA Today. “These changes are painful but they are necessary.”
The shuttering stores are across 19 states, ranging from New York to Washington to Hawaii, and currently make up for $1.4 billion of the retailer’s annual sales. However, Macy’s will keep 400 of its namesake stores running.
“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.
Macy’s is another retail giant to close stores, and comes after beloved fashion retailer Forever21 filed for bankruptcy in September 2019, in addition to closing is 178 locations in the United States. And fashion accessory retailer Charming Charlie went under just before that. In July, Charming Charlie Holdings Inc. filed for Chapter 11 bankruptcy and made plans to close its roughly 260 stores.