Macy’s department stores announced on Tuesday that they will be closing 125 of their least productive stores and laying off about 2,000 employees over the next three years.
While the shopping mall stores will phase out, Macy’s is going to focus their efforts on new smaller stores called ‘Market by Macy’s.’ The stores will still sell selective Macy’s merchandise but will now feature local goods, as well as local food options and beverages. The first Market by Macy’s is set to open Thursday in Dallas, Texas.
CEO Jeff Gennette said in a statement, “We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.”