AuctionsDec 12, 2025
13.54-Carat Paraíba Tourmaline Sets Records at Christie’sSet in a Tiffany & Co. necklace, it sold for $4.2 million, the highest price and price per carat paid for a Paraíba tourmaline at auction.
MajorsFeb 06, 2020
How Macy’s Plans to Save Itself
The retailer has a five-step plan, including closing 125 stores over the next three years and reducing its headcount by 2,000 employees.
Macy’s store in Herald Square. The retailer announced a turnaround plan, which includes shuttering 125 locations over the next three years.
New York—Macy’s Inc has announced plans to close 125 stores over the next three years and lay off 2,000 employees, as part of its new strategy to promote profitability and growth.
Dubbed “Polaris,” the three-year plan is expected to cost between $450 million to $490 million, most of which will be recorded in 2019.
It is estimated to save the company $1.5 billion and expected to be realized by the end of 2022.
“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,” said Jeff Gennette, chairman and chief executive officer of Macy’s, in a statement.
Macy’s detailed plan to reinvent itself encompasses store and office closures, a revamped merchandising strategy, an updated loyalty program, and a new store concept.
These are the five steps that may save the retail giant:
Strengthen Customer Relationships
The retailer said it will focus on building lifetime customer relationships via more personalization and an expanded loyalty program.
The next phase of its Star Rewards loyalty program, set to launch later this month, is expected to increase engagement from the occasional shopper and also invite new customers, said Macy’s.
Curate Quality Fashion
Macy’s is rethinking its merchandising strategy as it looks to be “the top destination for the best brands.”
The retailer is shifting its focus to its higher-margin private brands, setting a goal of building four $1 billion brands.
Accelerate Digital Growth
Macy’s will continue to grow its digital business, which it said rakes in more than $6 billion annually in sales, by investing in its website and mobile app.
Its website’s headquarters will relocate from San Francisco to New York City to be closer to its fashion brand partners.
The company will expand its presence in Atlanta, opening an office there and dubbing the city its primary technology hub.
Positions will also be added to its existing facility in Johns Creek, Georgia.
Optimize Store Portfolio
After evaluating its store portfolio, the retailer opted to close 125 stores over the next three years. Those stores account for $1.4 billion in annual sales, said Macy’s.
The company broke down its plan to improve its store portfolio into five additional subcategories: store closures and staffing, growth treatment, off-price expansion, new store format, and supply chain modernization.
For staffing, there will be staff reductions in some stores and increases in others. The company is cutting its workforce by 9 percent, or 2,000 corporate and support function positions.
The retailer is planning to upgrade 100 of its remaining stores, revamping the stores physically as well as updating merchandising strategies, technology, talent, and local marketing.
Macy’s said 150 stores have already been updated and that these stores outperform the others, accounting for 50 percent of 2019 total store sales.
Its off-price offerings will continue to expand, with plans to open 50 Backstage in-store locations and seven free-standing Backstage stores in 2020.
Macy’s described its off-price offerings, which include Backstage and Bloomingdale’s The Outlet, as “a highlight of the company’s performance.”
There’s also a new store format in the works called Market by Macy’s, an off-mall store that’s smaller than the average Macy’s.
The store will offer curated Macy’s merchandise alongside local goods, including food and beverages, as well as a community events calendar.
Macy’s began testing the idea in 2018, launching the service in 13 stores. The first official location will open in Dallas Thursday.
To modernize its supply chain, Macy’s plans to revamp its fulfillment network to boost inventory product productivity.
The retailer’s plan includes working toward increased sell throughs—the rate representing the amount of inventory a retailer receives from a supplier versus what gets sold—and lower markdown rates.
The company will use a new private brand sourcing strategy in an effort to reduce costs and improve speed.
Reset Cost Base
The reduction in employee headcount falls into this category, with plans announced to close offices around the country.
Macy’s offices in San Francisco, downtown Cincinnati and Lorain, Ohio will close.
Its customer contact center in Tempe, Arizona will also shutter, consolidating the operations to its centers in Mason, Ohio, which will increase its employee headcount, and Clearwater, Florida.
More employees will be hired at its Progress Place facility in Springdale, Ohio as well.
New York City will be the company’s sole corporate headquarters.
Changes are also coming to its senior management team.
John Harper, former chief stores officer, will take on the role of chief operations officer, taking on expanded responsibility for stores, technology, supply chain, and brand experience.
Filling Harper’s vacant seat as chief stores officer is Marc Mastronardi, former senior vice president of store operations and customer experience.
Danielle Kirgan, chief human resources officer, will add chief transformation officer to her current role, overseeing the company’s transition.
Looking Ahead
The retailer described 2020 as a “transition year,” expecting negative comps as a result of the business trajectory over the past six months, continued challenges in mall-based stores, and disruption as it implements its turnaround plan.
Net sales are expected to decline as a result of the store closures.
At the end of the plan, fiscal 2022, Macy’s may not be out of the danger zone.
Sales are expected to be within a range of $23.2 billion to $23.9 billion with same-store sales, accounting for owned plus licensed brands, down one percent to flat.
More on Majors
The Latest
CollectionsDec 12, 2025
Piece of the Week: Oscar Heyman’s Sphene RingTake luxury gifting to new heights this holiday season with the jeweler’s showstopping 12-carat sphene ring.
Events & AwardsDec 12, 2025
IGI Jewelry Design Contest Now Accepting SubmissionsThis year's theme is “Unveiling the Depths of the Ocean.”
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool BlueIn its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.
Weekly QuizDec 11, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More GemstonesStarting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth StoreThe 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8MThe filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.
WatchesDec 10, 2025
There’s A New Rolex Boutique in MiamiThe new location in the Design District pays homage to Miami’s Art Deco heritage and its connection to the ocean.
SurveysDec 10, 2025
Consumer Confidence Drops in November Inflations, tariffs, and politics—including the government shutdown—were among consumers’ top concerns last month.
SourcingDec 10, 2025
NAJA Announces Details for 2026 ‘Ace It’ Winter Conference“Longtime favorite” presenters, as well as first-time speakers, will lead talks and workshops at the annual event in Tucson next year.
Events & AwardsDec 10, 2025
MJSA Names 2025 Responsible Design Challenge WinnerSilas Smith of Meridian Metalworks won the challenge with his pendant that blends Australian and American landscapes.
AuctionsDec 09, 2025
‘Desert Rose’ Diamond Sells for $8.8M in Abu DhabiThe sale of the 31.68-carat, sunset-hued stone was part of Sotheby’s first series of events and auctions in Abu Dhabi.
ColumnistsDec 09, 2025
Holiday Sales Happen in December, Most Decisions Don’tMost customers who walk into your store this month have made up their minds. Your job is to validate their choice, Emmanuel Raheb writes.
TrendsDec 09, 2025
‘Once Upon a Time,’ Guzema Debuted Its Holiday CollectionThe collection features characters and motifs from Ukrainian folklore, including an enchanted mirror and a magic egg.
TechnologyDec 09, 2025
Gemvision Releases Updated MatrixGoldMatrixGold 3.11, the newest version of the jewelry design program, offers more flexibility, precision, and creative control.
Events & AwardsDec 09, 2025
MJSA Showcase Pavilion Returning to JA New York The pavilion will be part of the 2026 JA New York Spring show, scheduled for March 15 to 17.
MajorsDec 08, 2025
Juell Kadet, a ‘Lifelong Pillar’ of Rogers & Hollands, Dies at 96Kadet, a 1994 National Jeweler Retailer Hall of Fame inductee, helped grow the family-owned retailer in the Chicago area and beyond.
TechnologyDec 08, 2025
You’ve Heard of Smart Watches and Rings; Meet Smart EarringsBilled as the world’s smallest wearable, Lumia Health’s new smart earrings have a health tracker subtly embedded in the back.
TrendsDec 08, 2025
Amanda’s Style File: Celebrating December’s BirthstonesDon’t let those with December birthdays feel blue. Help them celebrate their month with blue zircon, turquoise, and tanzanite.
CollectionsDec 05, 2025
Piece of the Week: Robinson Pelham’s ‘Tsar Star’ EarringsThe new pink sapphire version of the piece dances with its wearer in the brand’s “Icons After Dark” holiday campaign.
TrendsDec 05, 2025
Pantone’s Color of the Year for 2026 Is … WhiteA choice that’s generated a lot of commentary, Pantone says “Cloud Dancer” marks a fresh start and encourages relaxation and creativity.
MajorsDec 05, 2025
Stuller Releases ‘Wrapped in Wonder’ CampaignThe manufacturer’s holiday campaign features a gift guide filled with trending designs and jewelry that can be personalized.
CrimeDec 04, 2025
Man Arrested After Allegedly Swallowing Fabergé Egg PendantThe man was charged with theft, accused of ingesting the necklace while in a jewelry store in Auckland, New Zealand.
IndependentsDec 04, 2025
Step Inside JR Dunn Jewelers’ Giant New Store The Florida independent expanded its store from 8,000 to 14,000 square feet, fulfilling the vision of its late co-founder, Jim Dunn.
Supplier BulletinDec 04, 2025
Introducing Shop Natural Day: A New Movement Celebrating Natural DiamondsSponsored by De Beers Group
