Macy’s plans to close 125 stores in the next three years, part of a new strategy meant to stabilize the company.

Those 125 closures will be in “lower-tier malls” and include 30 stores that are currently being closed, the company said. A list of the current closures can be seen here.

The 125 number is significant percentage of the company’s fleet, which now numbers 867 stores, including 163 Blue Mercury stores.

It’s also cutting 2,000 jobs and reducing its corporate and support function head count by around 9%. This will involve a consolidation of its corporate headquarters, which will now be solely located in New York City. Its digital operations will move from San Francisco to New York.

“This will be a tough week for our team as we say goodbye to great colleagues and good friends,” said chairman and chief executive officer Jeff Gennette in a statement. “The changes we are making are deep and impact every area of the business, but they are necessary.”

The company does have some plans for expansion.

It’s growing its off-price concept, Macy’s Backstage, and will open an additional 50 Backstage store-within-store locations and seven additional freestanding, off-mall Backstage stores.

It’s also testing a new store format, Market by Macy’s, reportedly created by brand experience officer Rachel Shechtman, founder of Story, the retail concept that Macy’s acquired in 2018.

The new format will be smaller than the average Macy’s store and located in off-mall lifestyle centers. It will feature curated Macy’s items, local goods, local food and beverage options, and a “robust community events calendar.” The first Market by Macy’s, will open in Dallas on Thursday.

The company also announced the following personnel changes:

John Harper, formerly chief stores officer, has assumed the role of chief operations officer with expanded responsibility for stores, technology, supply chain, and the brand experience.

Marc Mastronardi, who was most recently senior vice president of store operations and customer experience, has become chief stores officer, reporting to Harper.

Danielle Kirgan, chief human resources officer, will become chief transformation and human resources officer.

(Image courtesy of Macy’s)

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