Macy’s Is Closing 125 Department Stores in the Next Three Years
The retail apocalypse shows no sign of slowing down: Over the next three years, Macy’s will close 125 department stores, a fifth of its locations. Right now, 30 of those stores are in the process of closing. To further downsize, the retailer is cutting 2,000 corporate and support positions. It’s also consolidating its headquarters to New York City, closing its San Francisco and downtown Ohio offices.
With offerings across home products, fashion, and accessories, Macy’s was once a cornerstone in malls across the country. But the department store has been steadily closing stores for some time. “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,” chairman and chief executive officer of Macy’s Jeff Gennette said in a statement.
To compete with online giants like Amazon, Macy’s plans on accelerating digital business, which generates about $6 billion in sales per year. The retailer is also testing a new store format called Market by Macy’s. The new stores will be smaller than typical Macy’s department stores, and they won’t be located in malls. Instead, they’ll be in shopping centers. More connected to their surrounding neighborhood, they’ll feature curated Macy’s merchandise, local goods, local food, and a community events calendar. The first Market by Macy’s will open tomorrow in Dallas.
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work,” Gennette said. “This will be a tough week for our team as we say goodbye to great colleagues and good friends.”
Follow House Beautiful on Instagram.
You Might Also Like
