Macy’s to Close 125 More Department Stores

The Company has adopted a new development strategy, which will include the closing of department stores in large shopping malls.

American company Macy’s Inc, which operates one of the oldest and largest department store chains in the U.S., has announced plans to close 125 stores by 2023. According to The Wall Street Journal, the retailer has to take this step against the background of increasing competition from online platforms. As part of the optimization will be reduced by about 10% of Macy’s employees. 

The company has adopted a new development strategy, which will close department stores in major shopping malls, while the main focus of development will be on stores located in small malls. In recent years, Macy’s has renovated about 150 department stores. The retailer’s immediate plans include upgrading about 100 more stores.

“Our goal is to revive department stores as they should be. Stores in department store format are still an important part of the market; the only question is whether they are set up correctly. The idea of putting different products and brands under the same roof is still profitable,” commented Macy’s head Jeff Jennett.

As part of the new development program, Macy’s expects to save about $ 1.5 billion over three years. After the optimization of the company’s business, about 400 department stores of the same name remain under management, as well as 170 stores under the Bluemercury brand and 40 luxury department stores of Bloomingdale’s retail chain.