In response to the evolving retail landscape and changing consumer behaviors, iconic department-store chain Macy’s is undertaking significant measures, including a 3.5% reduction in its workforce, affecting approximately 2,350 employees, and the closure of five stores, according to CNN. The move is part of Macy’s ongoing efforts to adapt to the challenges posed by the online-shopping era.
A spokesperson for Macy’s explained the decision, stating, “As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company.”
The Wall Street Journal initially reported on Macy’s workforce reduction and store closures. While post-holiday layoffs are not uncommon in the retail sector, Macy’s decision reflects its commitment to adapting to changing market dynamics.
Despite a faster pace of consumer spending in December compared to the previous month, the retail giant is adjusting its operations to address ongoing challenges. Macy’s, which opened its first store in 1858, currently operates approximately 500 Macy’s branded stores and 55 upscale Bloomingdale locations.
While the retailer has been a symbol of the holiday season, hosting events like the Thanksgiving Day Parade and being featured prominently in classic films, the company has faced increasing competition and witnessed a shift in consumer preferences away from traditional department stores.
In December, reports emerged of a group of investors proposing to take Macy’s
private, presenting a potential avenue for the company’s future. However, Macy’s has not officially commented on this. The department store has implemented various strategies in recent years to rejuvenate its business, including introducing new brands and experimenting with smaller store formats. Despite these efforts, the company has struggled to alter its long-term trajectory, with its stock price plummeting by 75% from a peak of $73 per share in 2015.Over the years, Macy’s has closed nearly 300 stores,
representing almost one-third of its total stores, and currently operates around 700 stores across its various brands. The five stores slated for closure are located in Arlington, VA; San Leandro, CA; Lihue, HI; Simi Valley, CA; and Tallahassee, FL, with their closure expected in early 2024.RELATED CONTENT: Macy’s Honors Black Stories and Creators