US retailer Macy’s has announced its decision to close approximately 100 full-line stores as part of a series of actions to generate growth across the business.
The exact location of the affected stores have not yet been finalised, but most will shut in 2017.
The announcement follows Macy's decision to close 40 of its underperforming stores last year.
We recognise that these locations do not yield an adequate return on investment
Jeff Gennette, Macy’s President and CEO designate
Jeff Gennette, Macy’s President and CEO designate, said: “We recognise that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand.”
Macy’s strategy includes focusing on its highest-potential stores out of its 728-strong bricks-and-mortar portfolio.
The retailer plans to invest in its top stores, which it noted in a release “remain critical customer touchpoints”.
Macy's did not state how many jobs would be affected by the closures, but confirmed that those impacted would be offered positions in nearby stores where possible. Those that lose their jobs will be offered severance benefits.
At the same time as this announcement, Macy's also announced it plans to invest in both online and in-store improvements, including forging new licenses with brand partners.
Macy’s, Bloomingdale’s and Bluemercury will reinvest in their websites and apps in order to build upon the strong online growth seen in the businesses so far; Macy's' online business has grown at a compounded double-digit rate for 15 consecutive years.