Macy’s to close 125 department stores, cut thousands of jobs over next three years

The company deemed the closing stores, which were not identified, as the “least productive.”

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AP

Macy’s plans to close 125 of its department stores over the next three years, the company announced Tuesday.

The closures, which make up nearly one fifth of all Macy’s,are a part of what the company’s says is a new strategy to stabilize profit and grow.

The stores that will be closing account for about $1.4 billion in sales and were deemed the company’s “least productive stores,” according to a statement from Macy’s. The 30 stores currently in the process of closing are included in the 125 announced Tuesday, the statement said.

Macy’s did not identify which locations will be closing.

But officials said the corporate headquarters in Cincinnati, Ohio will close, too, along with headquarters in San Francisco and Lorain, Ohio. The sole corporate headquarters will be in New York City.

The company will eliminate 2,000 corporate jobs — 9% of its corporate and support staff, the statement also said.

“This will be a tough week for our team as we say goodbye to great colleagues and good friends,” said Macy’s CEO Jeff Gennette in the statement. “The changes we are making are deep and impact every area of the business, but they are necessary.”

A smaller store format, Market by Macy’s, will be tested outside of malls and will feature both local goods and Macy’s merchandise. The first of these is slated to open in Dallas later this week.

The company’s new strategy is expected to generate about $1.5 billion in savings by the end of 2022 and about $600 million by the end of this year.

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