Macy’s plans to reorganize its merchandising and marketing operations in response to changes in the way customers shop in stores and online.
Macy’s says it’s even contemplating an off-price business that would be similar to a TJ Maxx.
The retailer said Thursday it will also close 14 department stores but open two new locations, resulting in annual savings of roughly $140 million. Macy’s says it plans to reinvest those savings into its business. No Kansas City area stores are closing.
It says its overall workforce of about 175,000 will remain level as it lays off about 2,200 workers nationwide but picks up staffing in other areas. For example, Macy’s is expected to expand its San Francisco online division by hiring more than 150 workers.
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Macy’s has been a standout among its peers throughout the economic recovery and has reaped the benefits of its strategy of tailoring merchandise to local markets. But like other chains, it’s grappling with still-cautious consumers. It’s also trying to respond to shoppers’ more often buying — and researching before shopping — on their computers, smartphones and tablets.
Macy’s has been embracing new services for shoppers looking for more convenience. Last fall, it began testing same-day delivery of products bought on Macy’s.com and Bloomingdales.com in eight major U.S. markets. It also offers shoppers the opportunity to order online and pick up the merchandise at stores. It also launched new mobile shopping aps heading into the holiday season.
“We must continue to invest in our business to focus on where the customer is headed — to prepare for what’s next,” said Terry J. Lundgren, Macy’s chairman and CEO.
Macy’s said that it aims to increase the number of its outlet stores but is also looking to explore opportunities for an off-price business. As part of its reorganization, Macy’s plans to have one group buy and market merchandise for both its stores and its online business. The same will be true at its upscale Bloomingdale’s chain.
Separately, the Cincinnati company, which operates more than 800 stores, says a key sales measure rose 2.7 percent during November and December, in line with its expectations.