As a result, Macy’s plans to close approximately 125 of its least productive stores over the next three years, including approximately 30 stores that are in the process of closure now. These approximately 125 stores currently account for approximately $1.4 billion in annual sales.
Across the remaining store fleet, the company is adjusting its staffing with reductions in some stores and increases in others. The updated stores strategy better serves today’s shopper who expects a consistent experience whenever and wherever they encounter the Macy’s brand.
Macy’s will expand its Growth treatment to the remaining store portfolio, including upgrading an additional 100 stores in 2020. The Growth treatment includes improvements to the physical store, as well as investments in merchandising strategies, technology improvements, talent and local marketing.
To date, this treatment has been applied to 150 stores, which account for approximately 50% of 2019 total stores’ sales. These stores continue to outperform the balance of the fleet. The company is also testing a new store format, Market by Macy’s. This new format is smaller than an average Macy’s store and will be located off-mall in lifestyle centers.
Market by Macy’s will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options and a robust community events calendar. The company will open its first Market by Macy’s in Dallas on February 6, 2020.
Macy’s, Inc. is streamlining its organization with a net reduction in its corporate and support function headcount of 9%, or approximately 2,000 positions. The company also today announced several changes to the senior management team, effective January 31, 2020: John Harper, formerly chief stores officer, has assumed the role of chief operations officer with expanded responsibility for stores, technology, supply chain and brand experience.
Marc Mastronardi is now chief stores officer, reporting to Harper. Mastronardi was most recently senior vice president of store operations and customer experience. Danielle Kirgan, chief human resources officer, is taking on an expanded role as chief transformation and human resources officer.
She will lead the company’s transformation work. New York City will become the company’s sole corporate headquarters. The company will be closing its San Francisco, downtown Cincinnati and Lorain, OH offices.
The company will also close its Tempe, AZ customer contact center and consolidate customer service work into its Mason, OH and Clearwater, FL facilities. The company is increasing colleague populations in its Mason, OH location and its Progress Place facility in Springdale, OH.