Company Macy’s plans to close 125 stores in the next three years and cost thousands of corporate jobs, according to the official statement made on 4 February, writes Business Insider.
The plan for the closure of shops covers about a fifth of the retail locations of the company. Macy’s also cut 2,000 corporate jobs, or about 9% of the total number of employees and closed several offices. The changes are part of a three-year plan, which, according to representatives of Macy’s, will bring gross savings of $ 600 million in 2020 and $ 1.5 billion per year by 2022.
“We spend a significant structural change to reduce costs, to bring together teams and to reduce redundant work, — said CEO Jeff Jennette. — It will be a tough time for our team when we say goodbye to wonderful colleagues and good friends. The changes we are making, and deep impact all areas of the business, but they need it.”
Representatives of Macy’s said in new York will be the corporate headquarters of the company.
The company will close offices in San Francisco, in downtown Cincinnati, and Lorain, Ohio. Macy’s also will close its call center in Tempe, Arizona, and will bring together the work of customer service in their companies in Mason, Ohio, and in Clearwater, Florida.
“We will focus our resources on the healthy aspects of our business, we will directly unhealthy parts of the business and explore new sources of income, said Jennette. Over the last three years, we have shown that we can increase revenue, but we have much work to do to improve outcomes. We are confident that the strategy we are announcing today will enable us to stabilize margins in 2020 and lay the Foundation for sustainable, profitable growth.”
In Macy’s claim that will modernize the remaining stores and expand its network of stores reduced prices.
After the closure of 125 stores at Macy’s you’ll still have about 400 outlets. About 100 of these stores will get what Macy’s calls a “treatment growth” in 2020: the process involves improvement store and investing in merchandising strategy, technology, talent and local marketing. The company applied these updates to 150 stores and said results exceeded they have other locations.
Macy’s also plans to expand its network of stores and lower prices, including Backstage and The Outlet in Bloomingdale, to open 50 more stores Backstage inside shopping malls and shops and 7 separate outlets Backstage away from shopping centers.
Macy’s also reported that test the operation of a small shop called the Market from Macy’s. As in the shops Backstage, these “Market by Macy’s” will be away from shopping centers.
In retail outlets will consist of a small selection of Macy’s goods and of local goods, as well as food and beverages, “a robust calendar of public events,” says the company. The first Macy’s Market will open in Dallas on February 6.