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Macy's to close 125 stores, cut 2,000 jobs

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Christian Fernsby ▼ | February 4, 2020
Macy’s announced a strategy designed to stabilize profitability.
Retail in America   Macy’s is streamlining its organization
The company completed a rigorous evaluation of Macy’s store portfolio. As a result, 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 approximately 125 stores currently account for approximately $1.4 billion in annual sales.

Topics: Macy stores jobs

Macy’s is streamlining its organization with a net reduction in its corporate and support function headcount of 9%, or approximately 2,000 positions.

The company is focusing on building customer lifetime value, accelerating personalization and monetization programs and expanding its loyalty program. This includes the launch of the next phase of its already successful Macy’s Star Rewards Loyalty program later this month.

Loyalty 3.0 is expected to increase the engagement of occasional Macy’s customers and to bring new customers into the brand.

Customers come to Macy’s for a compelling curation of the latest trends, exclusive products and the best brands at great value. As part of the merchandising strategy, the company is committed to a more focused approach to its higher-margin private brands business with plans to build four $1 billion brands.

The company will continue to invest in its websites and mobile apps to further strengthen profitability.

The headquarters will relocate from San Francisco to New York City, the heart of the fashion industry.

Macy’s will expand its Growth treatment to the remaining store portfolio, including upgrading an additional 100 stores in 2020. To date, this treatment has been applied to 150 stores, which account for approximately 50% of 2019 total stores’ sales. These stores continue to outperform the balance of the fleet.