Macy's plans more store closures
Macy's Inc. plans to close more stores in the next three years. It's part of a company plan to weed out underperforming stores across the nation.
The Cincinnati retail giant announced Tuesday, Feb. 4, as part of its "Polaris strategy" that it would close 125 stores "in lower tier malls . . . and (it is) exploring new off-mall formats."
The closures are in addition to 30 stores in several states that the company began closing last year. No Oregon stores were included in last year's announcement. The company has not said which stores it plans to close in the next round of budget reductions.
Macy's has eight Oregon stores. Those include stores at Clackamas Town Center, Washington Square, The Streets at Tanasbourne and Lloyd Center. Other stores are in Eugene, Bend, Salem and Medford.
Overall, Macy's has 680 stores and 130,000 employees in 43 states. In 2018, the company recorded about $24.9 billion in sales.
Company officials said the store closures would help save about $1.5 billion by 2022. About $600 million could be saved this year. The 125 stores targeted for closure account for about $1.4 billion in annual sales. Remaining stores will see "staff adjustments," with reductions in some places and increases in others, officials said.
"We have a clear vision of where Macy's Inc. and our brands, Macy's, Bloomingdale's and Bluemercury, fit into retail today," said Jeff Gennette, Macy's chairman and chief executive officer. "We are confident in our Polaris strategy, and we have the resources required to return Macy's Inc. to sustainable, profitable growth."
Gennette said the company would "focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams." Part of that strategy includes opening smaller Market by Macy's stores outside of traditional shopping malls, he said. The first Market by Macy's store opens Feb. 6 in Dallas.
In addition to the store closures, Macy's will sell its Cincinnati headquarters building and move all its operations to New York City.
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