Macy’s plans to close 125 department stores over the next three years, an admission that a fifth of its locations cannot thrive as shoppers buy more online and make fewer trips to malls. The retailer is also cutting roughly 2,000 corporate jobs, which represents around 10 percent of its corporate workforce, WSJ reported.
- Worth Noting: Macy’s will continue operating 400 of its namesake stores, 40 Bloomingdale’s locations, and 170 Bluemercury beauty chains. Analysts are calling on the company to continue shrinking its footprint: “Macy’s has too many square feet chasing too few customers.”
- Perilous times for malls: The retailer is testing a new concept that will take it out of malls by opening smaller stores in strip centers, where more people are shopping.
- Reinvent or die: Forever 21 said earlier this week that it had reached an $81 million deal to sell its retail business to a group that includes Simon Property Group, Brookfield Property Partners, and Authentic Brands, CNBC noted. In November, the owner of Sears said it would shut 96 stores, leaving the once dominant chain with just 182 Sears or Kmart stores, which stands in stark contrast to the 2,000 locations it had open five years ago.