It’s Transition Year: Macy’s is Closing 125 Stores, Cutting 2000 Jobs In Hopes for Better Sales
Our beloved retail store Macy’s; where our last minute Christmas shopping is done, our regular traditions like watching the Macy’s Thanksgiving Day Parade and The fourth of July Fireworks is closing its doors to 125 stores. While many are concerned for the future of Macy’s, other Macy’s stores are gearing up for what the CEO Jeffrey Gennette describes as its transition year.
Macy’s was founded by Rowland Hussey Macy in 1851 where he opened his first R.H Macy & Co at the corner of 14th streeet and 6th Avenue in New York City selling only dry goods. It’s first sales of selling only dry goods was $11.06 which is equivalent to $326.82 today. After a year, the store had an increase of sales and finished the year with $85,000. Eventually, this led the retailer to expand its distribution by becoming what it is known as a department store.
Although, the retail store had a promising future, a recent change in consumer habits have been damaging sales and affecting department stores. Macy’s announce that slumping sales within the holiday season has contributed to the closure of 125 stores and layoffs for 2000 employees eliminating 9% of its corporate and support positions. The retailer will also move its corporate headquarters to New York City and redesign their stores that will increase sales in the future.
The CEO of Macy’s, Jeff Genette describes his plan for the year of 2020, he plans to upgrade 100 current stores and open smaller boutique stores outside of malls. These small boutique stores will be called Market by Macys and will carry Macy’s merchandise, local goods, food and drink options that will save 1.5 billion by the end of 2020.
I reached out to Macy’s Media Relations Julie Strider for an interview on the recent store closings, she directed me to Macy’s website for more information.