NEW YORK — Macy’s, the nation’s largest department store chain, announced plans to make NYC the sole headquarters for the company as it looks to restructure and streamline its business. Macy’s will cut 2,000 corporate jobs and plans to close 125 stores in the next three years.
Cincinnati and NY have been dual-head offices for Macy’s for years but the company will close its Ohio location and move operations to the Big Apple.
Macy’s also plans to move its digital operations from San Francisco to NY. Macys.com generates $6 billion a year in sales for the company. The move will allow for better coordination and increased collaboration and better access to Macy’s fashion partners which are located in NY. The company will also expand its presence in the Atlanta area, which will serve as the primary technology hub for the company. This includes adding positions to its current Johns Creek, GA, facility, as well as opening an office in Atlanta.
Macy’s plans to close approximately 125 of its least productive stores over the next three years, including 30 stores that are now in the process of closing. These 125 stores currently account for approximately $1.4 billion in annual sales.
Across the remaining store fleet, Macy’s says it is adjusting staffing with reductions in some stores and increases in others.
At the end of the third quarter, Macy’s reported a total of 636 stores and 38 Bloomingdale’s stores. The company says the top 150 stores make up 50% of total sales.
Macy’s is also testing a new store format, Market by Macy’s. This new format is smaller than an average Macy’s store and will be located off-mall in lifestyle centers. Market by Macy’s will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options and a robust community events calendar. The company opened its first Market by Macy’s in Dallas on February .6