Macy’s has announced an updated strategy and three-year plan including the shuttering of 125 stores. The company 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.
The approximately 125 stores currently account for approximately $1.4 billion in annual sales. Across the remaining store fleet, the company is adjusting its staffing with reductions in some stores and increases in others. Some 2,000 employees will lose their jobs in the process.
“We have a clear vision of where our brands, Macy’s, Bloomingdale’s and Bluemercury, fit into retail today,” says Jeff Gennette, chairman and chief executive officer, Macy’s. “We are confident in our Polaris strategy, and we have the resources required to return Macy’s, Inc. to sustainable, profitable growth. 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.”
The company also today announced several changes to the senior management team, effective Jan. 31: John Harper, formerly chief stores officer, has assumed the role of chief operations officer, with expanded responsibility for stores, technology, supply chain and brand experience. Marc Mastronardi is now chief stores officer, reporting to Harper. Mastronardi was most recently senior vice president of store operations and customer experience. Danielle Kirgan, chief human resources officer, is taking on an expanded role as chief transformation and human resources officer. She will lead the company's transformation work.
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work,” says Gennette. “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.”