Macy’s is planning to streamline its store portfolio by closing 65 outlets this year as part of its cost-efficiency efforts.
Of the 65 stores, 63 will close in early this year. The retailer also plans to close additional 30 stores over the next few years.
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The move is expected to affect 3,900 employees.
Macy’s chairman and chief executive officer Terry J Lundgren said: “As we’ve noted, it is essential that we maintain a healthy portfolio of the right stores in the right places.
"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.
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"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.”
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By GlobalDataThese closures are a part of the approximately 100 closings announced by the retailer last August.
With this move, Macy’s intends to improve organisational agility, minimise expense and achieve annual savings of approximately $550m, starting this year.
The savings are likely to allow the retailer to invest additional $250m in improving the digital business, undertake store-related growth strategies.
Macy's currently operates approximately 880 stores across the US, and is also planning to open stores in Abu Dhabi and Kuwait..
Image: Macy's store in New York City, US. Photo: courtesy of Ingfbruno via Wikipedia.
