NEW YORK -- Macy's announced Tuesday it will close 125 stores and cut 2,000 corporate jobs as the company tries to stabilize profitability and allow for future growth.
"We have a clear vision of where Macy's, Inc. and our brands, Macy's, Bloomingdale's and Bluemercury, fit into retail today," chairman and CEO Jeff Gennette said. "We are confident in our Polaris strategy, and we have the resources required to return Macy's, Inc. to sustainable, profitable growth."
The strategy has five major components, including "Store Closures and Staffing," which will involve a store-level assessment of each store's overall value to the fleet -- including predicted profitability based on consumer trends and demographics.
As a result, Macy's plans to close approximately 125 of its least productive stores over the next three years, including approximately 30 stores that are in the process of closure now.
Across the remaining stores, the company is adjusting its staffing with reductions in some stores and increases in others.
"Our customers expect convenience and a tailored experience across all channels," Gennette said. "We have an opportunity to build a broader yet integrated Macy's experience within a metropolitan area by investing in our magnet stores, building freestanding Backstage locations and testing new, off-mall store formats."
The company is also testing a new store format, Market by Macy's, which is smaller than an average Macy's store and will be located off-mall in lifestyle centers.
Market by Macy's will feature a mix of curated Macy's merchandise and local goods, as well as local food and beverage options and a robust community events calendar.
The company will open its first Market by Macy's in Dallas on February 6, 2020.
New York City will become the company's sole corporate headquarters, and offices in San Francisco, downtown Cincinnati and Lorain, Ohio, will be closed.
The company will also close its Tempe, Arizona, customer contact center and consolidate customer service work into its Mason, Ohio, and Clearwater, Florida, facilities.
The company is increasing colleague populations in its Mason, Ohio, location and its Progress Place facility in Springdale, Ohio.
Other components of the plan include strengthening customer relations, curating quality fashion, accelerating digital growth, and resetting the cost base.
Macy's to close 125 stores, launch new store format