Macy’s announced Tuesday February 4, 2020 that it will shut 125 stores over the next three years and cut about 2,000 corporate jobs (9% of Macy’s workforce). The 125 stores now planned for closure, which include the roughly 30 it already announced, account for approximately $1.4 billion in annual sales.
Woodfield Mall Macy’s survives; see stores closing and Macy’s and Marshall Field’s history at the end of this article.
Macy’s said it plans to exit weaker shopping malls (lower-tier malls), and shift focus to smaller-format stores in strip centers. Macy’s reported it will reinvest some of these savings back into its business, with a focus on growing its off-price business, known as Backstage. Macy’s also plans to expand outside the mall and improve online sales.
The two Illinois stores set for closure are in Carbondale (University Mall) and West Dundee (Spring Hill Mall). The state with the most closures is Florida with four: Miami (The Falls Mall), Pompano Beach (Pompano Citi Centre), Sanford (Seminole Towne Center), and Vero Beach (Indian River Mall).
Macy’s is closing tech offices in San Francisco and at the Cincinnati headquarters, and is consolidating tech operations in New York and Atlanta. Macy’s is also closing its headquarters in downtown Cincinnati, and an office in Lorain, Ohio, and will establish its headquarters in New York.
Macy’s closed 40 stores in 2016.
Beginning in 2020, it said Macy’s expects to generate annual gross savings of about $1.5 billion, which will be fully realized by the end of 2022. In 2020, Macy’s is anticipating gross savings of about $600 million, “some of which will flow to the bottom line in order to stabilize operating margin.”
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.”
— Macy’s CEO Jeff Gennette
Macy’s shares were recently down more than 3%, after initially jumping more than 3% on the news. Macy’s stock, which is valued at more than $5 billion, has fallen more than 35% over the past 12 months.
Store closings and history below ads …
Macy’s to shutter 125 more stores. https://t.co/U21Okii1ou
— FORTUNE (@FortuneMagazine) February 5, 2020
Macy’s is scaling down Story, the experiential shop within-a-shop it introduced less than a year ago, closing nearly half its locations https://t.co/p9W6UHSR8m
— Bloomberg (@business) February 6, 2020
Macy's says it will grow 4 of its private brands to $1 billion https://t.co/MrtpjXucYS
— CNBC (@CNBC) February 5, 2020
Macy’s plans to close 125 of its department stores and cut 2,000 jobs as part of a large restructuring https://t.co/eGhGoqIQxy
— Bloomberg (@business) February 4, 2020
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Macy’s Store Closings 2020
Macy’s store closures beginning in 2020:
Antioch: Somersville Towne Center
San Diego: Horton Plaza Park
Meriden: Westfield Meriden
Miami: The Falls Mall
Pompano Beach: Pompano Citi Centre
Sanford: Seminole Towne Center
Vero Beach: Indian River Mall
Decatur: The Gallery at South DeKalb
Macon: Macon Mall
Waikoloa Village: Kings’ Shops
Lewiston: Lewiston Center Mall
Carbondale: University Mall
West Dundee: Spring Hill Mall
Muncie: Muncie Mall
Owensboro: Towne Square Mall
Salisbury: The Centre at Salisbury
Leominster: The Mall at Whitney Field
Helena: Helena Northside Center
Hicksville: Broadway Commons
Winston-Salem: Hanes Mall
Cincinnati: Northgate Mall
St. Clairsville: Ohio Valley Mall
Stow: Stow-Kent Plaza
Harrisburg: Harrisburg East Mall
State College: Nittany Mall
Goodlettsville: RiverGate Mall
Burlington: Cascade Mall
Walla Walla: Downtown
Macy’s Back in Time …
In Chicagoland, Macy’s is especially connected with memories of Marshall Field’s. Macy’s was founded in 1858 by Rowland Hussey Macy. Marshall Field’s (officially Marshall Field & Company) was a department store in Chicago, Illinois founded in 1852 by Marshall Field — an American entrepreneur. Macy’s and Marshall Field’s have histories in parallel.
Marshall Field’s expanded from the downtown Chicago store to the suburbs and other states in the 50s, 60s and 70s, but expansion slowed down in the 80s. Marshall Field’s opened at Woodfield Mall in Schaumburg in 1971.
B.A.T. British-American Tobacco purchased Marshall Field & Company, ending the publicly traded entity Marshall Field & Company in 1982; but the Marshall Field’s name was kept alive. A U.S. division of B.A.T. was formed and named BATUS or Batus, Inc., which also acquired Saks Fifth Avenue from 1973 to 1990; and had a controlling interest in Kohl’s starting in 1972 before Kohl’s went public in 1992.
Macy’s became a division of Federated Department Stores in 1994, keeping the Macy’s name. Federated Department Stores was initially an American holding company founded by Xavier Warren in 1929 in Cincinnati, Ohio. Many years later Federated Department Stores would rename itself Macy’s, Inc.
Dayton-Hudson Corporation (soon to be renamed Target Corporation) acquired Marshall Field’s in 1990 from BATUS. Dayton-Hudson Corporation renamed itself Target Corporation in 2000. Then Target Corporation renamed their Dayton’s and Hudson’s department stores Marshall Field’s in 2001.
Marshall Field’s was purchased by another retail player, May Department Stores (the May Company), from Target Corporation in 2004 (May Department Stores was founded in Leadville, Colorado, by David May in 1877, and moved to St. Louis in 1905).
On February 28, 2005, Federated Department Stores (soon to be renamed Macy’s) agreed to terms of a deal to acquire the May Department Stores Company for $11 billion.
The former flagship Marshall Field and Company Building located on State Street between Randolph Street and Washington Street in downtown Chicago was officially renamed Macy’s in 2006 and is currently one of four Macy’s flagship stores. Other Marshall Field’s stores, including the Woodfield Mall store, were also renamed Macy’s.
Federated Department Stores renamed itself to Macy’s Inc. in 2007. Subsidiaries of Macy’s Inc. currently include the American luxury department store Bloomingdales and bluemercury — an American chain of beauty stores.
Macy’s State Street …
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— CNBC (@CNBC) February 4, 2020