Charisse Jones USA TODAY
Macy’s will close roughly 125 stores, a fifth of its locations, over the next three years.
After previously announcing that it would close 29 locations, Macy’s said Tuesday that it will now shutter nearly 100 more.
The retailer also said that it is cutting about 2,000 positions , eliminating 9% of its corporate and support positions.
“We are making deep cuts that impact every area of our business,” Macy’s CEO Jeff Gennette said Wednesday during the retailer’s Investors Day. “These changes are painful but they are necessary.”
Macy’s, once the model of the luxury department store, has struggled to stay afloat during a time when Amazon has remade the shopping landscape and one time retail giants like Payless and Toys R Us are going out of business.
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Macy’s store closures:Macy’s to close 125 stores over next 3 years and slashing 2,000 jobs
Macy’s initial closures:Macy’s is closing nearly 30 stores in 19 states. Is your location on the list?
The company is also cutting roughly 2,000 corporate jobs, or 10% of corporate and support staff, and closing several offices. It will abandon a dual headquarters in Cincinnati—a structure Macy’s has kept since 1994 when it was still one of the country’s biggest retailers—and put all headquarters roles in New York.
Macy’s, which will keep running about 400 of its namesake stores, is ramping up its restructuring efforts after a yearslong slump. Cobbled together from various regional chains, the company has struggled even as it left the weakest malls and boosted spending on e-commerce.
Once the backbone of America’s shopping malls, department-store chains like Macy’s, J.C. Penney and Sears have been losing customers to the convenience of Amazon.com Inc.AMZN 0.51% and the discounts found at off-price chains like T.J. Maxx.
“Our goal is to reclaim and revitalize what a department store should be,” Macy’s Chief Executive Jeff Gennette said in an interview. “Department stores are still vital if they are done right. There is viability to having many categories and brands under one roof.”