Macy’s(NEW YORK) — Macy’s plans to close nearly 70 stores as part of a series of actions to “streamline its store portfolio, intensify cost efficient efforts and execute its real estate strategy,” the company said on Wednesday.
The retailer says the 68 store closings — out of 730 current locations — are part of the approximately 100 closings announced in August 2016. That decision was meant to support a strategy of “fewer stores with better customer experience.” The company estimates that 3,900 employees will be “displaced” by the closures.
Macy’s says that the closures, along with “significant restructuring of [its] operations” and “sale of properties consistent with the previously announced real estate strategy” would save approximately $550 million beginning in 2017.
Macy’s Inc. plans to invest $250 million into its digital business, and other ventures.
“Over the past year, we have been focused and disciplined about making strategi decisions to position us to gain market share and return to growth over time,” said Macy’s CEO Terry Lundgren. “While we are pleased with the strong performance of our highly developed online business, as well as the progress made on selling and visual presentation programs and expense reduction initiatives in 2016, we continue to experience declining traffic in our stores where the majority of our business is still transacted.”
Earlier Wednesday, Macy’s reported that sales declined by 2.1 percent in November and December 2016 compared to the same timeframe in 2015.
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