Macy’s has announced that it will be firing over 2,000 employees by January
Macy’s will close 150 stores over the next 3 years as part of a new strategy that focuses more on Bloomingdale’s luxury and Bluemercury.
Tony Spring, the new CEO of the company, announced publicly on Tuesday morning that it would be entering a bold new chapter. Macy’s is expected to have 350 stores after all planned closures. The company will then add approximately 45 Bloomingdales and Bluemercury stores.
“A Bold New Chapter” is a call to action. Spring stated that the statement challenges the status quo to create a modern Macy’s, Inc. By enhancing the shopping experience, offering relevant products, and delivering compelling value, we are reviving our relationships with customers. Our teams are motivated by the challenges ahead, as we work to increase market share, create sustainable, profitable growth, and create value for our shareholders.
Macy’s announced that it would close locations with low sales. According to The New York Times, these locations only account for 10% of sales but 25% of square footage.
Macy’s Inc. Macy’s Inc. plans to close approximately 150 of its stores over the next three years in a major strategy shift which will lean more heavily on Bloomingdales chains and Bluemercury chains.
The company announced that at least 50 Macy’s stores will close this fiscal year. The remaining locations will be closed by 2026.
This announcement comes just a few weeks after another round of closures was announced by the company in mid-January. The plan included closing five stores and eliminating 2,350 jobs, or roughly 3.5% of its overall workforce.
Macy’s Douglaston New York City: The company announced that at least 50 Macy’s stores will close this fiscal year. The rest of the locations are expected to shut down by 2026.
The company stated that it is laying off workers as part of its plan to automate and streamline the supply chain.
The retailer announced in October that it would be accelerating the expansion of its small-format stores by opening 30 smaller shops across the U.S.
Macy’s Department Store Macy’s has announced that it will have to lay off over 2,000 employees due to plans by management to streamline the supply chain through automation.
The company announced in August that it would open four smaller-format stores, which are between 30,000 to 50,000 square feet, or about one-fifth of the size of its traditional locations, located within the Northeast and Western regions.
The company is repositioning its portfolio to adapt better to the changing retail landscape and to compete with Target, Nordstrom, and Kohl’s who have added small-format stores in the last few years.
The COVID-19 pandemic has weakened department stores in recent years. Iconic names such as J.C. Penney, and Neiman-Marcus have filed for bankruptcy in 2020.
