A ‘Barron’s Roundtable’ panel provides insight on investing in Macy’s, Nordstrom and Gilead Sciences.
Famed retailer Macy’s is planning on shuttering five storefronts and laying off over 2,000 employees, according to a report from the Wall Street Journal.
The WSJ, citing a memo sent to employees Thursday afternoon and people familiar with the matter, said that the retail giant is planning on laying off roughly 2,350 positions, or 3.5% of it’s overall workforce.
The company said that the layoffs come as management plans to streamline its supply chain by implementing more automation.
According to the memo, the WSJ said that Macy’s also plans to outsource some of its roles, but they did not specify which ones.
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Shoppers walk to the Macys store in the Downtown Crossing district, Wednesday, Nov. 17, 2021, in Boston. Macy’s Inc. reported fiscal third-quarter net income of $239 million Thursday, Nov. 18, after reporting a loss in the same period a year earlier. (AP Photo/Charles Krupa) / AP Newsroom)
The company also said in the memo that it would close five Macy’s stores and sell two furniture locations that it plans to relocate.
The stores that are closing are in Ballston Quarter, Arlington, Va.; Bayfair Center, San Leandro, Calif.; Kukui Grove Center, Lihue, Hawaii; Simi Valley Town Center, Simi Valley, Calif.; and Governor’s Square, Tallahassee, Fla.
People walk past the large Macy’s billboard on a building in front of the Macy’s Herald Square store on October 8, 2021 in New York City. (Gary Hershorn/Getty Images / Getty Images)
The changes come as the company attempts to transition in order to appeal to a younger generation of shoppers.
In Oct., the retailer announced that it’s accelerating its small-format store expansion by opening up 30 smaller stores across the U.S.
MACY’S OPENING UP TO 30 SMALL-FORMAT STORES
The news builds on its August announcement when the company said it was opening four small-format locations, which range between 30,000 and 50,000 square feet, about one-fifth the size of its traditional stores, within the Northeast and Western regions.
The company has been repositioning its portfolio to better adapt to the changing retail environment and compete with the likes of Target, Nordstrom and Kohl’s, which have been adding small-format stores over the past few years.
Fitting rooms are seen at the newly opened Macy’s store located at Arroyo Market Square, on Saturday, Sept. 30, 2023, in Las Vegas, Nev. (Macy’s Inc.)
Massive department stores have lost their edge in recent years with the COVID-19 pandemic delivering a blow to iconic names like J.C. Penney and Neiman Marcus, both of which filed for bankruptcy protection in 2020.
Bed, Bath & Beyond, once seen as a retail powerhouse, filed for Chapter 11 bankruptcy protection last April after suffering from mounting losses and several failed attempts to turn around its business.
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Macy’s did not immediately respond to Fox News Digital’s request for comment.
Fox News’ Daniella Genovesa contributed to this report.
