Macy’s to shut 125 stores in next 3 years
By Retail4Growth Team | February 05, 2020
Macy’s has outlined a three-year Polaris strategy to stabilize profitability and position the company for growth.
US department store chain Macy's has recently announced it plans to shut 125 stores over the next three years, and cut thousands of corporate jobs, as it closes its San Francisco, downtown Cincinnati, and Lorain, Ohio offices.
Macy’s said it will exit from weaker shopping malls, where footfalls have slowed. The company will also close its Tempe, Arizona customer contact center and consolidate customer service work into its Mason, Ohio and Clearwater, Florida facilities.
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work. 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. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.
Macy’s said New York City will become the company’s sole corporate headquarters. This will allow for better coordination and increased collaboration and better access to Macy’s brand partners. The company will also expand its presence in the Atlanta area, which will serve as the primary technology hub for the company.
“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. Over the past three years, we have shown we can grow the top-line; however, we have significant work to do to improve the bottom-line. We are confident the strategy we are announcing today will allow us to stabilize margin in 2020 and set the foundation for sustainable, profitable growth,” Gennette said.
Macy’s has outlined a three-year Polaris strategy to stabilize profitability and position the company for growth.
The company will expand its loyalty program, develop private-label brands, reshape its supply chain to support omnichannel customer behavior and expand Macy’s Backstage.
It will also test a new store format which it’s calling ‘Market by Macy’s’ that is smaller than an average Macy’s store and will be located off-mall in lifestyle centers. These stores will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options. The company will open its first Market by Macy’s in Dallas on February 6, 2020.
