Macy’s is shutting 14 stores and may launch an off-price format similar to T.J. Maxx.
It is also revamping its marketing and merchandising to reflect its new omnichannel structure. Under the new setup, merchandising and marketing for Macy’s stores and website will be consolidated into one unit, instead of separate divisions. The company-owned Bloomingdale’s chain will adopt the same structure.
It is also exploring the possibility of launching an off-price business, where items are offered for limited times at reduced prices. It is not known if this will be under the Macy’s banner.
In addition to shutting 14 stores, the company is opening two: a Macy’s in Los Angeles and a Bloomingdale’s in San Jose, Calif., and is continuing with seven previously announced openings. It currently has a little less than 800 stores.
The 14 stores that are shutting down: Metrocenter Mall, Phoenix; Vallco Shopping Mall, Cupertino, Calif.; Promenade (main store), Woodland Hills, Calif.; Promenade (furniture gallery), Woodland Hills, Calif.; Gulf View Square Mall, Port Richey, Fla.; Northland Center, Southfield, Mich.; Wendover, Greensboro, N.C.; Ledgewood Mall, Ledgewood, N.J.; ShoppingTown Mall, DeWitt, N.Y.; Rotterdam Square Mall, Schenectady, N.Y.; Kingsdale Shopping Center, Columbus, Ohio; Richmond Town Square, Richmond Heights, Ohio; Upper Valley Mall, Springfield, Ohio; and Southland Mall, Memphis, Tenn.
The company’s changes are expected to generate $140 million in savings, a statement said.
In related news, the company said comp sales rose 2.1 percent in November and December.