When you think of retail, you think of Macy’s.
Established sometime in the 1800s, you can find their stores throughout the country, with the company’s historic flagship location situated in New York City’s “Herald Square.” But like most other retailers, Macy’s recently announced it will be closing 125 sores in underperforming malls, over the course of the next three years.
The company is experiencing what every other brick-and-mortar store is facing – slumping sales because of e-commerce.
“We have a clear vision of where Macy’s Inc. and our brands, Macy’s, Bloomingdale’s, and Bluemercury, fit into retail today… [and] have the resources required to return Macy’s Inc. to sustainable, profitable growth,” said Jeff Gennette, chairman and chief executive officer of Macy’s Inc.
The store is banking on its online presence, which generated $6 billion in sales just last year, as opposed to its125 physical locations which yielded roughly $1.6 billion in sales.
“We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams… [and] are confident in the strategy we are announcing today will allow us to stabilize margin in 2020 and set the foundation for sustainable, profitable growth,” Gennette said.
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To read the full report on Law360, click here: https://www.law360.com/realestate/articles/1240790/macy-s-closing-roughly-125-stores-and-moving-hq-to-ny?nl_pk=42a91c78-f3a6-457d-abc3-890342439c20&utm_source=newsletter&utm_medium=email&utm_campaign=realestate (subscription required)