Macy's Just Announced Plans to Close 125 Retail Stores
The legacy retail giant expects to lay off roughly 2,000 employees over the next three years.
Macy's shoppers can expect to make fewer trips to the mall in the near future. The legacy retail giant just announced plans to close 125 stores—a move that will go into effect over the next three years. News of Macy's store closings means that nearly one-fifth of the brand's total stores will shutter by the end of 2022.
The company announced the news in a statement released on Tuesday that detailed a three-year strategy to stabilize profitability. In the statement, Macy's executives also announced plans to lay off roughly 2,000 employees.
"We are taking the organization through significant structural change to lower costs, bring teams closer together, and reduce duplicative work," said Jeff Gennette, the 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."
News of Macy's significant structural change includes the closing of the company's headquarters in Cincinnati, Ohio, along with shuttered offices and customer service centers in San Francisco, Calif., Lorain, Ohio, and Tempe, Ariz. The shift also comes after Macy's announced plans to go fur-free by early 2021. Macy's announced its commitment to prohibiting the sale of animal fur back in October 2019, which signaled a monumental move in the right direction for the iconic brand.
Fans of the iconic brand will undoubtedly experience a change in their shopping habits, however Macy's Inc. unveiled a new concept titled Market by Macy's, a small-format store that will offer a mix of curated Macy's merchandise, local food, and a community event calendar. The first such market will open in Dallas on February 6 of this year.