US department store chain Macy’s has recently announced it plans to shut 125 stores over the
next three years, as the company closes its San Francisco, downtown Cincinnati, and Lorain,
The company said it will exit from weaker shopping malls, where footfalls have slowed. The
company will also close its Tempe, Arizona customer contact center and consolidate
customer service work into its Mason, Ohio, and Clearwater, Florida facilities.
Jeff Gennette, chairman, and chief executive officer of Macy’s, Inc said that we are taking the
organization through significant structural change to lower costs, bring teams closer together
and reduce duplicative work. “This will be a tough week for our team as we say goodbye to
great colleagues and good friends. The changes we are making are deep and impact every
area of the business, but they are necessary. I know we will come out of this transition
stronger, more agile and better fit to compete in today’s retail environment,” he added.
Macy’s said New York City will become the company’s sole corporate headquarters. This
will allow for better coordination and increased collaboration and better access to Macy’s
brand partners. The company will also expand its presence in the Atlanta area, which will
serve as the primary technology hub for the company.
He further said that the company will focus its resources on the healthy parts of the 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,” Gennette said.