With the traditional department store in its death throes, Macy's Inc is doing its best to keep the concept alive.
The struggling retailer late Tuesday unveiled a strategic blueprint to defend its business against the twin threats of online and discount competitors. The centerpiece is closing 125 of its department stores - almost a quarter of the total - over the next three years, including some 30 locations it previously targeted for shuttering last month. These are the so-called "neighbourhood stores," leftovers that Macy's was reluctant to close sooner. It should have, but at least it's getting to grips with it now.
Alongside the closures, Macy's is also cutting about 2,000 corporate jobs, and shutting offices in San Francisco and Cincinnati, in an effort to save US$1.5 billion ($2.3b) a year by the end of 2022.
But no one ever cut their way to growth.
While taking an axe to the store estate was badly needed - and with department stores under so much pressure, costs probably needed to be reined in, too - Macy's must ensure that what is left of its estate is compelling. Having the right products, at prices that customers are prepared to pay, and in settings that appeal, is crucial.