14:07 GMT19 February 2020
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    WASHINGTON (Sputnik) – Macy’s Inc., a major US department store chain, will be closing 125 of its stores in the next three years, and is cutting 2,000 jobs, the company said in a statement.

    "Macy’s plans to close approximately 125 of its least productive stores over the next three years, including approximately 30 stores that are in the process of closure now. These approximately 125 stores currently account for approximately $1.4 billion in annual sales", the company said on Tuesday.

    According to the release, about 100 of its stores will be upgraded this year and its headquarters will be moved from San Francisco to New York City.

    "The company is also testing a new store format, Market by Macy’s1. This new format is smaller than an average Macy’s store and will be located off-mall in lifestyle centres. Market by Macy’s will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options and a robust community events calendar. The company will open its first Market by Macy’s in Dallas on 6 February 2020", the company statement says.

    Macy’s is also making changes in its senior management team and cutting jobs.

    "Macy’s, Inc. is streamlining its organization with a net reduction in its corporate and support function headcount of 9%, or approximately 2,000 positions", the company said.

    Macy’s expects its new strategy to generate annual gross savings of approximately $1.5 billion, with $600 million of the savings expected this year.

    Tags:
    New York City, Macy's, United States
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