Leading U.S. department store chain Macy’s on Tuesday announced a plan to close 125 stores over the next three years and lay off about 2,000 employees.
The 125 stores, about a fifth of its total, currently account for some 1.4 billion U.S. dollars in annual sales for the U.S. retailer.
Macy’s is also expected to cut some 2,000 job positions, or 9 percent of its workforce.
“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,” Jeff Gennette, the company’s chairman and chief executive officer, said in a statement.
Macy’s hopes the strategy will generate annual gross savings of some 1.5 billion dollars by the end of 2022.
The department store chain has been grappling with retaining customers amid changing consumer behavior. It has shut down more than 100 stores since 2015.