Bulletin
Investor Alert

New York Markets Close in:

The Wall Street Journal Archives | Email alerts

Feb. 4, 2020, 4:37 p.m. EST

Macy’s to close 125 department stores and pull up stakes at underperforming malls

Also on the chopping block is dual-headquarters structure, with Cincinnati on the short end of the stick

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Macy's Inc. (M)
  • X
    J.C. Penney Co. Inc. (JCP)
  • X
    Amazon.com Inc. (AMZN)

or Cancel Already have a watchlist? Log In

By Suzanne Kapner

Macy’s Inc. plans to close 125 department stores over the next three years, an admission that a fifth of its locations cannot thrive as shoppers buy more online and make fewer trips to malls.

The company /zigman2/quotes/201854387/composite M +15.81% is also cutting roughly 2,000 corporate jobs, or 10% of corporate and support staff, and closing several offices. It will abandon a dual headquarters in Cincinnati — a structure Macy’s has kept since 1994 when it was still one of the country’s biggest retailers — and put all headquarters roles in New York.

‘Department stores are still vital if they are done right.’

Macy’s CEO Jeff Gennette

Macy’s, which will keep running about 400 of its namesake stores, is ramping up its restructuring efforts after a yearslong slump. Cobbled together from various regional chains, the company has struggled even as it left the weakest malls and boosted spending on e-commerce.


Getty Images
A shopper exits Macy's in Manhattan.

Once the backbone of America’s shopping malls, department-store chains like Macy’s, J.C. /zigman2/quotes/204684963/composite JCP +7.78% and Sears have been losing customers to the convenience of Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN -0.29% and the discounts found at off-price chains like T.J. Maxx.

“Our goal is to reclaim and revitalize what a department store should be,” Macy’s Chief Executive Jeff Gennette said in an interview. “Department stores are still vital if they are done right. There is viability to having many categories and brands under one roof.”

In addition to the namesake brand, Macy’s operates Bloomingdale’s and Bluemercury stores.

An expanded version of this report appears at WSJ.com.

Trending at WSJ.com:

This Southern town was growing so fast it banned growth

98.6 degrees is no longer the normal human-body temperature

/zigman2/quotes/201854387/composite
US : U.S.: NYSE
$ 6.96
+0.95 +15.81%
Volume: 29.08M
April 9, 2020 12:52p
P/E Ratio
3.84
Dividend Yield
0.00%
Market Cap
$1.86 billion
Rev. per Employee
$197,992
loading...
/zigman2/quotes/204684963/composite
US : U.S.: NYSE
$ 0.35
+0.03 +7.78%
Volume: 5.59M
April 9, 2020 12:51p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$104.35 million
Rev. per Employee
$126,516
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,037.11
-5.89 -0.29%
Volume: 2.57M
April 9, 2020 12:52p
P/E Ratio
88.36
Dividend Yield
N/A
Market Cap
$1017.12 billion
Rev. per Employee
$359,671
loading...

Get news alerts on Macy's Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.