Macy's is shuttering a fifth of its retail locations.
The retail chain has announced it will close 125 stores and lay off 2000 employees over the course of the next three years, reported CNBC.
In addition, Macy's will liquidate its Cincinnati and San Francisco offices and retain NYC as its sole corporate headquarters.
"We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work,” CEO Jeff Gennette said in a statement.
“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.”
While the company didn't list the locations that would be closing, they intend to phase out weak-performing stores in shopping malls and focus on smaller-format shops entitled Market by Macy's.
These new stores will include curated Macy's merchandise as well as food and beverage items. Looks like lunch at Macy's is going to be a thing!
The company also plans to grow its Backstage discount clothing stores and invest more resources into their online division as customers continue to flee brick and mortar outlets for the convenience of digital retail businesses like Amazon.
This latest round of downsizing comes after the company previously announced it was closing 29 Macy's and Bloomingdales stores earlier this year.
The closures all come on the heels of an earnings report that indicated holiday sales in November and December declined 3.9%.