Macy's is undergoing a massive restructuring of their national profile, including the closure of 125 stores, consolidating corporate offices, and the development of new store concepts.
Less than a month after announcing the impending closure of 28 of its department stores, Macy's, Inc., has announced a drastic consolidation move. According to a recent press release, Macy's unveiled a comprehensive three-year plan to bolster revenue numbers, including the closure of 125 stores located all over the country as well as the opening of 50 "off-price" stores known as Macy's Backstage.
One of the most impactful changes, second only to the store closures, will be the relocation of all corporate headquarter activities to New York City. This comes along with the loss of about 2,000 corporate jobs and thousands of retail positions that will be cut over the next three years. The corporate locations being closed to make this change include offices in San Francisco, Cincinnati, Lorain, and Tempe.
Courtesy of Macy's Inc.
The CEO had this to say about this new plan:
“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.”
— Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.
The plan isn't all about down-sizing, though. In addition to all of these closures, a new venture called Market by Macy's will start to appear in lucrative regions, including a pilot location in Dallas opening this month. The concept will combine local goods and foods with curated Macy's items for a unique shopping experience. Macy's Backstage and profitable stores will receive more attention as leaders seek to optimize the revenue coming in from locations that are doing well.
For more information, refer to the official press release by Macy's Inc. As of the time of publication, an official list of the stores to be closed has not yet been released.
What do you think about this restructuring plan? Could it be enough to save this American icon of retail? Sound off in the comments!