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Macy's Plans to Shutter 125 Stores, According to WSJ Report

The beleaguered department-store chain hopes to regain its luster by cutting costs.
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Struggling department-store retailer Macy’s  (M) - Get Free Report plans to close 125 stores this year according to a published report in The Wall  Street Journal Tuesday.

Local media around the country reported last month that Macy’s would be shuttering some locations. But the company has said it wouldn’t publicly reveal the figure until a meeting with investors Wednesday. Macy’s has staggered for several years, as customers shun its stores in favor of online shopping.

The 125 units to be eliminated represent about 24% of Macy’s 525 total. It’s also axing about 2,000 corporate jobs, 10% of the total.

And it’s abandoning several offices, including a headquarters in Cincinnati, according to The Journal. Now Macy’s sole headquarters will be in New York. It’s closing its technology offices in San Francisco, CNBC reported.

“Our goal is to reclaim and revitalize what a department store should be,” Macy’s CEO Jeff Gennette told The Journal. “Department stores are still vital if they are done right. There is viability to having many categories and brands under one roof.”

The cutbacks will generate $480 million in restructuring charges, The Journal said. Macy’s projects savings of $1.5 billion annually by the end of 2022, with $600 million coming in the current fiscal year.

At Wednesday’s meeting, Macy’s is expected to detail a multi-year plan aimed at regenerating sales growth for the 162-year-old retailer, CNBC reported.

At last check, Macy’s shares traded at $16.50 in after-hours action, up 0.18% from Tuesday’s close of $16.47. The stock had gained 0.06% in regular trading Tuesday.