It seems that every week, more and more stores are closing across the country. In the past few months, TJ Maxx, Pizza Hut, CVS, Sears, Boston Market and Walgreens have all shuttered locations as a cost-cutting measure. Now, Macy's will be following suit. The iconic department store chain plans to close some of their 500 stores, as well as trim their workforce.
According to the Wall Street Journal, 2,350 employees will be laid off and five stores will shut down. In a statement, Macy's explained, "As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company."
As for the stores set to close, they include the ones in San Leandro and Simi Valley, California; Tallahassee, Florida; Arlington, Virginia; and Lihue, Hawaii. Clearance sales on the inventory in those locations will start very soon and run for eight to 12 weeks.
Macy's, which also owns Bloomingdale's and Bluemercury, had a solid third quarter last year when compared to past performance, but they still are battling some financial challenges. They received a $5.8 billion buyout offer from a private investor group in December but this week, they rejected it.