Macy's Announced It Will Close 125 Stores
In sad news for shoppers everywhere, Macy's announced it will close 125 stores over the next three years — almost one-fifth of its total chain locations.
According to CNBC, the retail giant is planning to exit struggling malls, and is hoping to generate savings. The company will also close tech offices in San Francisco and its Cincinnati headquarters, and cut about 2,000 corporate jobs.
"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams," CEO Jeff Gennette said in a statement to CNN.
In recent years, the company has faced drops in sales, and CNBC reports the company’s stock, which is valued at more than $5 billion, has fallen more than 35% over the past 12 months. Last year, the company blamed its sales decline on weak shopping malls. "We’ve been investing in malls where our developers are investing and ... we feel really good about that initiative, and those stores continue to outpace the breadth of our fleet," Hal Lawton, Macy’s president, said at the time.
As of now, it's unclear which exact stores the company plans to shutter, but Macy's said in a press release that they account for approximately $1.4 billion in annual sales.