Macy’s announced earlier this week that the company will be closing 125 stores over the next three years. These stores currently account for approximately of $1.4 billion in annual sales.
The department store chain will have an updated strategy put into place as well as a three-year plan designed to stabilize profitability. In addition, it will position Macy’s for extended growth in its future.
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. in a Press Statement. “This will be a tough week for our team as we say goodbye to great colleagues and good friends. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.”
Macy’s Inc. revealed that they have “completed a rigorous evaluation of Macy’s store portfolio” prior to making the official announcement. The company’s main focus moving forward is to continue building customer lifetime value.
Although 125 stores are set to close, the digital business across its brand is growing. It currently generates $6 billion in sales per year which will allow Macy’s to continue to provide a fashion experience through apps and websites.