Macy’s To Close 125 Locations; California Stores Among Threatened

Macy’s said Tuesday it plans to close 125 stores over the next three years, representing a fifth of the retail giant’s locations, according to a report. The news comes on the heels of a similar announcement made in January when the company said it would close at least 28 stores.

While it was unknown which locations will be shuttered in this latest round of closings, the news could impact one or several of the 98 Macy’s stores in California.
Macy’s officials told the Wall Street Journal the final list of locations could change based on market conditions and the performance of the malls where the stores are located.

The company also plans to cut jobs — approximately 2,000 corporate positions, or 10 percent of corporate and support staff — and close several offices. Among the closures will be the company’s second headquarters in Cincinnati, Ohio, along with a move to locate all headquarters roles in New York City.

SEE ALSO: Retail Apocalypse: 3 More Chains Closing California Stores

The closings are part of a strategy to overhaul the 161-year-old retail giant, which has closed dozens of underperforming stores in the past four years, many of them in shopping malls, as it invests more in its most lucrative properties, the Washington Post reports.

While the restructuring will likely cost the company $480 million, Macy’s expects to save $1.5 billion annually by the end of 2022. The company told the Wall Street Journal it plans to test a new concept that will take stores out of malls by opening smaller stores in strip centers.

In August 2016, Macy’s said it would close 100 stores. Since that announcement, the retail chain has been closing locations as their leases expire. However, when reached by Business Insider, a Macy’s representative did not comment on whether the latest stores were part of its planned closures from 2016.

Macy’s is part of a growing list of brick-and-mortar establishments that have seen a nosedive in revenue and popularity with the emergence of e-commerce companies such as Amazon and Walmart.

SEE ALSO:

• Another Retail Chain Closing All Calif. Stores: Report
• CA Chain Restaurant Closures: Major Eateries Shutter In 2019-2020
• Dozens Of California Chain Stores Close In 2019-2020