Could Rhode Island Lose Macy's? Company Closing 125 Stores

Providence RI

05 February, 2020

12:54 PM

Description

Macy's said Tuesday it plans to close 125 stores over the next three years, representing a fifth of the retail giant's locations, according to a report. The news comes on the heels of a similar announcement made in January when the company said it would close at least 28 stores. While it was unknown which locations will be shuttered in this latest round of closings, the news could impact the two Rhode Island Macy's stores in Providence and Warwick. Macy's officials told the Wall Street Journal the final list of locations could change based on market conditions and the performance of the malls where the stores are located. The company also plans to cut jobs — approximately 2,000 corporate positions, or 10 percent of corporate and support staff — and close several offices. Among the closures will be the company's second headquarters in Cincinnati, Ohio, along with a move to locate all headquarters roles in New York City. Here's What RI Retail Stores Closed In 2019 Or Will Close In 2020The closings are part of a strategy to overhaul the 161-year-old retail giant, which has closed dozens of underperforming stores in the past four years, many of them in shopping malls, as it invests more in its most lucrative properties, the Washington Post reports. While the restructuring will likely cost the company $480 million, Macy's expects to save $1.5 billion annually by the end of 2022. The company told the Wall Street Journal it plans to test a new concept that will take stores out of malls by opening smaller stores in strip centers. In August 2016, Macy's said it would close 100 stores. Since that announcement, the retail chain has been closing locations as their leases expire. Macy's is part of a growing list of brick-and-mortar establishments that have seen a nosedive in revenue and popularity with the emergence of e-commerce companies such as Amazon. A record 9,300-plus store closings were announced in 2019, and that number could be even higher in 2020, according to a report by Business Insider.