Macy's Will Close 125 Stores In The Next 3 Years
(CNN/CBS) -- Macy's said Tuesday that it will close 125 stores over the next three years, nearly one fifth of the department store chain's total locations.
Macy's will look to exit struggling malls. It will also cut roughly 2,000 jobs, or 10% of its corporate staff, and close its offices in Cincinnati and San Francisco. Macy's expects to save $1.5 billion by the end of 2022 from the cost-cutting measures.
It is unclear how many hourly workers will lose their jobs from the store closures.
"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams," CEO Jeff Gennette said in a statement.
The 125 stores Macy's will close currently account for around $1.4 billion of the retailer's annual sales. In January, Macy's announced it would be closing its store at the Mall at Whitney Field in Leominster.
Macy's planned closings are the latest blow to American department stores, which have been bruised by the rise of Amazon and the expansion of low-price clothing chains like TJMaxx.
Department store competitors like Sears and fast-fashion chains such as Forever 21 faced similar challenges and were forced into bankruptcy.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. CNN's Nathaniel Meyersohn contributed to this report.)
