The department store Macy’s is planning to close 100 stores as part of a new strategy that it hopes will position the retailer for future growth.
In a news release, Macy’s said it will operate fewer stores and concentrate on better-performing locations to “elevate their status as preferred shopping destinations.”
Things are changing at Macy’s
Remaining stores will add new vendor shops, expand personal shopping services and hold in-store events and experiences to increase foot traffic.
On its website and app, Macy’s plans to improve the search and ordering process.
But 100 of Macy’s 728 stores will not go ahead with this new plan. Instead, most of the undisclosed locations will be closing by early 2017.
Here’s what Macy’s President Jeff Gennette said about the impacted stores:
“Nearly all of the stores to be closed are cash flow positive today, but their volume and profitability in most cases have been declining steadily in recent years. We recognize that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand. We decided to close a larger number of stores proactively so we can invest in a winning customer experience in our most productive and highest-potential locations, as well as invest in growth sooner and more aggressively in digital and mobile.”
Macy’s will let employees of the affected locations know about the store closing decisions before a public announcement is made. We will update you when that happens.
Displaced associates may be offered positions in nearby stores, the company said.
According to a CNN Money report, there have already been about 44,000 retail layoffs announced this year, based on data from Challenger, Gray & Christmas. Walmart’s store closures alone impacted 16,000 workers, with many more affected by several other retail closings this year.
Prior to this announcement, Macy’s said it has already closed about 90 locations since 2010, partly due to the rise of online shopping.
The big question is what impact this will have on local shopping malls.
Earlier this year, industry analysts warned that several hundred malls anchored by Macy’s, JCPenney and Sears could be at risk of closing over the next decade.