Macy's Closes 68 Stores And Cuts 10,000 Jobs

Macy´s  – the American department store chain – has begun 2017 with the announcement that it plans to close 68 stores and cut more than 10,000 jobs. The restructure, announced via a press release, is set to save the company an estimated $550 million a year – some of which will be invested in growing the digital business, the company confirmed.

“As we’ve noted, it is essential that we maintain a healthy portfolio of the right stores in the right places,” Terry J Lundgren, chairman and chief executive officer of Macy’s, said. “Our plan to close approximately 100 stores over the next few years is an important part of our strategy to help us right-size our physical footprint as we expand our digital reach. We are closing locations that are unproductive or are no longer robust shopping destinations due to changes in the local retail shopping landscape, as well as monetising locations with highly valued real estate. These are never easy decisions, and we are committed to treating associates affected by these closings with respect and transparency.

Of the 68 stores, three have already shuttered during 2016, 63 will be closed in early spring 2017, and two will be closed in mid-2017. Three other locations were sold, or are to be sold, and are being leased back, the press release detailed.

Macy’s is not alone in taking action to combat challenging retail circumstances. Several other American household names are in strife: JC Penney has closed 80 locations since 2014, Racked reports, while Sears has closed nearly 300.