On January 18th local time, American department store chain Macy's announced plans to lay off 3.5% of its workforce and close five stores to streamline operating costs.
The company will start laying off 2350 employees on January 26th, which will affect various positions in the office and stores.
The 5 stores that are about to close are located in Virginia, California (2), Hawaii, and Florida. According to company spokesperson Chris Grams, the closure will take place at the beginning of this year.
The US Department of Commerce recently stated that Americans increased their spending on retailers in December. But even so, Macy's still couldn't escape the curse of retailers always laying off employees after holidays.
The management also stated that the company will announce a broader strategic plan in the near future.
In a memo sent to employees, the company mentioned transferring certain areas of business overseas, but did not provide specific details.
The CEO of Macy's department store will be Tony Spring, the CEO of Bloomingdale's department store, in early February, replacing the outgoing Jeff Gennett.
As the new CEO, Spring is committed to reducing promotional expenses and increasing profits to help the company recover from the excess inventory in 2022.
Over the past year, Macy's has been facing sales pressure due to a decrease in consumer spending on clothing and non essential items. Last December, an investment group also proposed the idea of privatizing the company for $5.8 billion.
In this context, this well-known department store with a history of 166 years has begun a transformation, hoping to resonate with consumers.
The memo states that the decision to lay off employees and close stores this time was made in response to the constantly changing needs of consumers and the market, with the aim of improving cost structure and enhancing competitiveness.
Compared to offline store sales, Macy's department store has turned its attention to consumers who enjoy online shopping, and has begun to learn from the sales models of its competitors, e-commerce company Amazon, and large retailer Target Department Store.
In addition, Macy's Department Store is also promoting the development of its brands, Bloomingdale and Bluemercury.
Regarding the opening of stores, Macy's Department Store plans to expand its business to the suburbs and open more small stores outside the department store. Last autumn, the company announced that it would open around 30 small stores on the commercial street in the next two years.
At present, the company is operating over 700 stores.
Compared to its peak of $73 per share in 2015, Macy's stock price has fallen by 75%. Since then, the company has closed nearly 300 stores.