SAN FRANCISCO—A total of 30 Macy’s stores are in the process of closing including a San Francisco tech office with over 800 employees.
The move is a part of the company’s three year plan for stabilization and growth. A total of 125 stores are expected to be close by the company. The Cincinnati and Lorain overhead offices are also closing for campus consolidation.
Macy’s indicated that the company is testing out a new concept that will focus more on smaller stores in open air strip malls versus those in antiquated shopping malls. A total of 100 stores have closed since 2015.
CEO Jeff Gennette stated that, “[We] are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work.”
According to a press release from the company, Macy’s will apply a “growth treatment” to the remainder of its stores. Investments and physical improvements to 100 locations are currently in the works. Macy’s has upgraded 100 of its best locations since 2018.
The company expects their strategy to generate an estimated $1.5 billion in annual gross cost savings starting this year.