KHTS Radio Santa Clarita Radio – Santa Clarita News
Macy’s is currently assessing store productivity of 125 store locations, which could result in the closure of undetermined locations over the next three years, officials said Wednesday.
Macy’s is currently updating strategies over a three-year plan designed to stabilize profitability and position the company for growth, Macy’s officials said in a news release.
“We have a clear vision of where Macy’s, Inc. and our brands, Macy’s, Bloomingdale’s and Bluemercury, fit into retail today. We are confident in our Polaris strategy, and we 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.
As a result, Macy’s plans to close approximately 125 of its least productive stores over the next three years, including approximately 30 stores that are in the process of closure now.
Across the remaining store fleet, the company is set to adjust its staffing with reductions in some stores and increases in others.
However, it is still unclear which Macy’s stores are going to be closed, according to officials.
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work,” Gennette said. “This will be a tough week for our team as we say goodbye to great colleagues and good friends. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.”
Macy’s is focusing on building customer lifetime value, accelerating personalization and monetization programs and expanding its loyalty program, according to officials.
This includes the launch of the next phase of its Macy’s Star Rewards Loyalty program later this month. Loyalty 3.0 is expected to increase the engagement of occasional Macy’s customers and to bring new customers into the brand.
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Santa Clarita will keep it’s Macy’s. You will see some changes within the store itself as certain categories are eliminated and others are added. Other than new floors, paint, and a few new fixtures and displays, the Valencia Town Center location will soldier on. You will most likely see a newly added “Backstage” section
– or store-within-a-store taking a greater amount of square footage than what is currently utilized for full-line retail.
The problem for Macy’s has been and continues to be the what was once a real and compelling reason to shop there for a very special occasion no longer exists.
Today, Macy’s has to compete at both the full-line/full-price side of the equation, and peddle the Backstage concept to keep up with the likes of T. J. Maax, Marshalls and Ross. Macy’s Backstage does not compete or is competitive with Nordstrom Rack.
Macy’s will survive as there will be a place for brick and mortar stores. The big gotcha is when you have the “sameness” among the many remaining Macy’s locations -they are no longer a “destination” as they were in years past under such storied brands as Marshall Field’s, Dayton’s, Hecht’s May Company, Burdines, Lazaurus, etc. In many ways, it’s just like going to your neighborhood Target – who frankly has upped their game and is looking more and more like the department store of previous decades and has kept many of the departments that have been shed by the likes of Macy’s.
Many malls throughout California will not be so lucky as Macy’s sheds even more locations in California to combat rising increases to the minimum wage and long-term leases that are set to expire and increase dramatically in rent – those costs have to cut and the lower subset of non-performing stores will go by the wayside.
The good news for Santa Clarita is that the Valencia Town Center will continue it’s relevance as the mall re-purposes with the addition of Costco and other retailers. When JCPenney winds down it’s shop – another opportunity to re-purpose and bring Target over from across the street with a larger and greatly expanded location.
SO_CAL_RETAIL_SLUT
I’m glad Macy is going down. This company didn’t care for us.
Well, I got a $10 off for my birthday. I have spent the last 45 minutes trying to buy something but when I put my Code No. in it always says doesn’t apply to this item. I finally gave up. Why bother telling me I have $10 off an item for my birthday. This happens so often. I get a discount code but never applies to the items I want so I just don’t order in the end. That’s what happens at Macy’s!