Macy's to Close 45 Stores This 2021 as Part of Restructuring Plan

America's largest department-store chain is downsizing. Department store operator Macy's Inc. stated on Tuesday it would close an estimated 45 stores this 2021 as part of its three-year plan to diminish store count to be able to focus on its more productive branches.

Macy's to Close 45 Stores

Prior to the 2020 lockdowns in the United States, Macy's had declared the plan to close 125 of its least productive stores to manage the plummeting mall traffic.

According to a spokeswoman for Macy's Inc. on Tuesday, the closures are part of the company's previously disclosed three-year Polaris plan that called for major closures, primarily in tier C and D malls.

The ambitious turnaround plan by announced by Macy's in 2020 to modernize itself that included shedding around a quarter of its large department stores, reported Fortune.

Now, the retailer has declared the largest tranche since the pandemic commenced of those closings in a move that is gaining necessity due to the COVID-19 pandemic's impact on its business.

The move is aimed at keeping the department store chain lucrative.

According to Macy's, "To that end, we announced several store closures today that align to the guidance we provided in February 2020. These closures bring us closer to achieving the right mix of mall-based stores," reported CBS News.

The department store chain earlier declared it would cut 2,000 jobs and close 125 stores from February 2020 through the next succeeding years.

A list of shops facing closures will be released on Wednesday.

Macy's had closed an estimated 30 stores last year.

In an e-mailed statement, Macy's remarked, "Macy's is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls," reported US News.

The novel coronavirus has aggravated the turmoil of particular mall-based chains. This has forced them to shutter shops and double down on their online business. Meanwhile, few chains are planning to open smaller stores in off-mall locations.

Macy's operates more than 750 stores, including Bloomingdale's, Bluemercury, and its titular stores.

The retail chain has reportedly announced to employees at 45 locations that the shops will close by mid-year.

Liquidation sales have begun at a number of locations. The rest are scheduled to commence later this month.

On Wednesday, Macy's identified the 37 locations it looks to shutter by mid-year as part of the retailer's earlier plan to close 125 stores by 2023. Macy's also listed nine shops that recently closed.

According to Macy's Inc. Chairman and CEO Jeff Gennette, the timeline for permanent shop closings can be altered as the company oversees the competition and the recovery from the global health crisis.

Gennett stated, "Retail today has been disrupted. And while that disruption creates challenges, it also holds opportunity. With many competitors closing or struggling, we see the potential to bring new customers into our brands and gain market share," reported Patch.

The company did not reveal how many employees would be lost.

According to Macy's, it will invest more in its mobile app and online shop, which officials stated account for over $6 billion annually in sales.