If you’ve been shopping at Macy’s for years on end, it might shock you to hear the news that the department store brand will be shutting down 68 stores. However, don’t expect them to be disappearing quite yet.
The move to shut down so many stores also means laying off 10,000 employees, which will save the company an estimated $550 million a year. They’re planning to turn around and invest some of that money into their digital business instead.
So far three of those stores have already been closed, with the rest being closed in 2017.
Terry J Lundgren, the chairman and chief executive officer of Macy’s released a statement about their future plans.
“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. 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 monetizing 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.”
JC Penny and Sears are other large department store brands that have already gotten a head start on similar game plans.