In an endeavour to employ a growth strategy, major fashion retailer Macy’s intends to shut down around 125 of its least productive stores in next 3 years.
This also includes 30 stores that are already in the process of closing down.
As a part of its business strategy, Macy’s also plans to reduce the headcount in its corporate and support function by 9 per cent or about 2,000 positions.
Speaking about Macy’s growth strategy, Jeff Gennette, Chairman and CEO, Macy’s, reportedly, averred “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.”
Jeff further said “We are taking the organisation through significant structural change to lower costs, bring teams closer together and reduce duplicative work. This will be a tough week for our team as we say goodbye to great colleagues and good friends.”
The retailer also said that company’s headquarters will relocate from San Francisco to New York City thereby enabling effective coordination and enhanced collaboration to Macy’s brand partners.