Sorry, Shoppers: Macy's Is Closing Hundreds of Stores
The company is also laying off thousands of employees.
If you're looking to update your wardrobe or home with items from your local Macy's, you might want to stop in soon. The retailer just announced it's closing around 125 stores and eliminating about 2,000 positions.
Macy's Inc., which also owns Bloomingdale's, revealed the news in a press release on February 4. The statement explains that the company has "significant work to do to improve the bottom-line," and is implementing a three-year strategy to lower costs and increase profits. That master plan includes optimizing the store's portfolio, which means closing stores and reducing the staff.
In the next three years, Macy's will close its poorest-performing stores, including about 30 that are already in the process of shutting their doors. Those stores account for about one-fifth of all locations and $1.4 billion in annual sales. Of course, closing more than 100 storefronts means many people, about 9% of Macy's total employees, will lose their jobs.
"We are taking the organization through significant structural change to lower costs, bring teams closer together, and reduce duplicative work," Jeff Gennette, chairman and chief executive officer of Macy's, Inc, says in the release. "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," he continues. "I know we will come out of this transition stronger, more agile, and better fit to compete in today's retail environment."
Unfortunately, Macy's is just one of many retailers shuttering locations. In mid-January, Pier 1 announced it would close about half of its stores, and then, just a few weeks later, Papyrus said it would be shutting down every single one of its locations.
Macy's hasn't revealed which stores will close, but the company is having an investor day on Wednesday. More information about the closures and position eliminations could be disclosed during the presentation. Until then, stop into your local store and inquire with an employee if the shop is closing.