Macy’s announced it was laying off 2,500 people and shutting five stores even as it reported generally healthy holiday sales.
The changes come as the department store announced that its holiday sales jumped 4.3 percent. But the venerable retailer said that it needed to take cost-cutting measures, which will generate savings of approximately $100 million per year, to “support continued profitable sales growth.”
The company still employs about 175,000 people.
The changes include combining the Midwest region with the North region, creating a new North Central region. The company is also eliminating the district planner role in soft home categories, and cutting office, administrative, and back-of-the-house expenses across the company.
Macy’s announced it will shut stores in the following locations this spring: Fiesta Mall, Mesa, Ariz; Metcalf South Shopping Center, Overland Park, Kan.; Jamestown Mall, Florissant, Mo.; Medley Centre, Irondequoit, N.Y.; and Fashion Place Mall, Murray, Utah.
Eight new and replacement Macy’s and Bloomingdale’s stores are currently planned, the retailer said, all of which were previously announced. Macy’s will open in University Town Center, Sarasota, Fla.; Shops at Summerlin, Las Vegas; Mall at Bay Plaza, Bronx, N.Y.; Plaza del Caribe, Ponce, Puerto Rico; and Miami Worldcenter, Miami.
Bloomingdale’s will be opening at Stanford Shopping Center in Palo Alto, Calif.; Ala Moana Center, Honolulu; and Miami Worldcenter, Miami.