Macy’s Massive Layoff and Store Closings

By Johnny Jan 19, 2024 #Macy's #Retail

Famed retailer Macy’s is planning to shutter five storefronts and lay off over 2,000 employees, according to a report from the Wall Street Journal.

The WSJ, citing a memo sent to employees Thursday afternoon and people familiar with the matter, said that the retail giant is planning on laying off roughly 2,350 positions, or 3.5% of it’s overall workforce.

The company said that the layoffs come as management plans to streamline its supply chain by implementing more automation.

According to the memo, the WSJ said that Macy’s also plans to outsource some of its roles, but they did not specify which ones.

The company also said in the memo that it would close five Macy’s stores and sell two furniture locations that it plans to relocate.

The stores that are closing are in Ballston Quarter, Arlington, Va.; Bayfair Center, San Leandro, Calif.; Kukui Grove Center, Lihue, Hawaii; Simi Valley Town Center, Simi Valley, Calif.; and Governor’s Square, Tallahassee, Fla.

The changes come as the company attempts to transition in order to appeal to a younger generation of shoppers.

In Oct., the retailer announced that it’s accelerating its small-format store expansion by opening up 30 smaller stores across the U.S.

The news builds on its August announcement when the company said it was opening four small-format locations, which range between 30,000 and 50,000 square feet, about one-fifth the size of its traditional stores, within the Northeast and Western regions.

The company has been repositioning its portfolio to better adapt to the changing retail environment and compete with the likes of Target, Nordstrom and Kohl’s, which have been adding small-format stores over the past few years.

Massive department stores have lost their edge in recent years with the COVID-19 pandemic delivering a blow to iconic names like J.C. Penney and Neiman Marcus, both of which filed for bankruptcy protection in 2020.

Bed, Bath & Beyond, once seen as a retail powerhouse, filed for Chapter 11 bankruptcy protection last April after suffering from mounting losses and several failed attempts to turn around its business.

Original article

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