Macy’s announced on Thursday that it will cut around 3.5% of its workforce and close five mall locations due to reduced consumer spending on apparel.
Despite a recent 50% share price surge, it lags behind pre-pandemic levels. The stores slated for closure are in Arlington, San Leandro, Lihue, Simi Valley, and Tallahassee, with shutdowns expected this year.
The move will impact approximately 2,350 positions, including corporate and store roles. The decisions, based on consumer research, intend to improve cost structures.
Macy's, facing competition from online and off-price retailers, is revamping its strategy by overhauling brands, opening smaller stores outside malls and relying on Bluemercury and Bloomingdale's for growth.
It plans to invest in improving customer shopping experience, like having visual display managers and upgrading digital functions for online shopping, and automating the supply chain.
As a part of its ongoing transformation, Macy's previously announced closures and layoffs in 2020.
In December, an investor group proposed a $5.8 billion private takeover bid, exceeding the market value by over $1 billion.