Another retail giant is closing more stores and cutting more jobs.
As the physical retail industry continues to falter, Macy’s has announced 5,000 of its employees will now be jobless due to the closure of seven previously unidentified stores and other job cuts at remaining locations. In August 2016, the retailer announced a plan to close 100 stores, 81 of which have now been revealed.
More than 120 stores have been closed since 2015, according to CNBC.com.
The stores set to close span seven states, including four in California and one in Cincinnati, where Macy’s is headquartered. See the full list at the bottom of this story.
“Looking ahead to 2018, we are focused on continuous improvement and will take the necessary steps to move faster, execute more effectively and allocate resources to invest in growth,” Macy’s CEO Jeff Gennette said in a statement this week.
Liquidation sales are expected to begin Jan. 8 and last for 8 to 12 weeks. Macy’s hopes that its downsizing efforts will help the company save as much as $300 million in annual expenses, beginning in fiscal year 2018, which will then be reinvested back into the business.
That reinvestment will likely go into Macy’s web operations as the company looks to compete in the surging online marketplace.
Despite the challenges faced by its physical stores, the company says its digital sales have jumped by double digits. It also reported strong performances for active apparel, beauty products, shoes, dresses, coats and fine jewelry.
“While closing a store is always a difficult decision because of the impact on our customers, our associates and the community, Macy’s is delighted to have served these communities over the years,” a spokesperson said in a statement.
Although stores across the country are closing at a rapid pace, consumers are still spending. The difference lies in where they are spending their money.
Since the Great Recession, spending has shifted largely to online purchases, as more people turn to Amazon and other online retailers. It remains to be seen how the industry will adapt to keep up with the changing environment.
Macy’s Stores Closing
Which store locations are being shuttered in early 2018? Here is the list Macy’s released.
- Laguna Hills Mall – Laguna Hills, California
- Westside Pavilion – Los Angeles, California
- Novato (Furniture) – Novato, California
- Stonestown Galleria – San Francisco, California
- The Oaks – Gainesville, Florida
- Miami (Downtown) – Miami, Florida
- Magic Valley Mall – Twin Falls, Idaho
- Honey Creek Mall – Terre Haute, Indiana
- Birchwood Mall – Fort Gratiot Township, Michigan
- Fountain Place (Downtown) – Cincinnati, Ohio
- Burlington Town Center – Burlington, Vermont