20 January 2024 , 22:21
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Macy's, the 166 year old department store business, is set to cut 2,300 jobs and close five stores as it announces major changes to its business in the US.
The cuts represent around 3.5% of its workforce, with the last day of employment for affected employees being January 26.
The five stores set to close are in Arlington (Virginia), San Leandro (California), Lihue (Hawaii), Sim Valley (California) and Tallahassee (Florida). It is expected that the stores will close in the next couple of months. However, as the larger Macy's stores close, 30 smaller stores will open instead.
Macy's is looking to make changes with its business in order to keep up with competitors online such as Amazon, Shein, Target and T.J.Maxx. The brand is said to be looking at putting more focus into online shopping, NBC reports.
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The company will open up to 30 smaller stores in strip malls over the next two years. Macy's is famous for its giant mall stores, but the smaller stores will target customers who live in the suburbs who are going to outdoor shopping centres. It will also focus on Bloomingdal's to drive growth, as well as its beauty chain Bluemercury.
The brand will open up 30 smaller stores instead (SOPA Images/LightRocket via Getty Images)Company spokesman Chris Grams said: "As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company.
The company is also set to get a new CEO. Tony Spring, current CEO of Bloomingdale's, will step into the role of CEO for Macy's in February when outgoing CEO Jeff Gennette retires.
The Macy's flagship store in the Herald Square area of New York (Bloomberg via Getty Images)Discussing the company's finances in October, Chief Financial Officer and Chief Operating Officer Adrian Mitchell hinted that changes would be coming soon. "We are committed to bringing more inspiration on a daily basis to our customers," he shared. "We look forward to sharing more on how that ladders to long-term profitable growth on our fourth quarter call." Macy's is about to welcome a new boss. Tony Spring, the current CEO at Bloomingdale's, will take over as Macy's CEO in February when Jeff Gennette steps down.
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