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• Macy’s announced a three-year revitalization strategy on Tuesday that will involve the closure of 125 stores and layoffs for 2,000 employees.
• The five-pronged approach will include an improved customer loyalty program, experimental concept stores, corporate office downsizing, and investments in digital programs, among other efforts.
• Visit Business Insider’s homepage for more stories.

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Macy’s is rolling out a new three-year business strategy called „Polaris“ in the hopes of turning the tide against slumping sales as traditional retailers continue to struggle against the retail apocalypse.

The retailer announced a five-part plan on Tuesday to „stabilize profitability and position the company for growth,“ which details the forthcoming closure of 125 stores around the country and layoffs of an estimated 2,000 employees. Overlord 2 for mac. In a press statement, Macy’s CEO Jeff Gennette said the aim of the strategy is to strengthen each of Macy’s brands, including its namesake company, Bloomingdale’s, and Bluemercury.

„The changes we are making are deep and impact every area of the business, but they are necessary,“ Macy’s CEO Jeff Gennette said in a statement. „I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.“

In addition to the store closures and job cuts, significant changes include the debut of Market by Macy’s, an experimental concept store that will open in Texas this week, as well as the expansion of off-price stores like Macy’s Backstage and Bloomingdale’s The Outlet.

Here’s a closer look at each part of Macy’s new business plan.

Strengthen customer relationships

Macy’s will launch the next phase of its rewards program, Macy’s Star Rewards Loyalty, later this month. The updated iteration „is expected to increase the engagement of occasional Macy’s customers and to bring new customers into the brand,“ according to a Macy’s press release.

Curate quality fashion

In an attempt to diversify its product assortment and elevate the brand, Macy’s plans to develop four $1 billion „high-margin private brands“ while also improving its current inventory selection.

Accelerate digital growth

The retailer plans to capitalize on digital growth by increasing investments in Macy’s websites and mobile apps. As part of this strategy, the company announced it would relocate its Macys.com headquarters from San Francisco to New York City „to allow for better coordination and increased collaboration and better access to Macy’s brand partners.“ Additionally, Macy’s will add positions to its technology hub in Atlanta.

Optimize store portfolio

After conducting a „rigorous evaluation“ and audit of the Macy’s store portfolio, the company decided to close 125 of its underperforming stores over the next three years. This number, which accounts for $1.4 billion in sales, includes 30 stores that were already in the process of shuttering, according to the Macy’s press release.

Moving forward, Macy’s plans to expand off-price stores including Macy’s Backstage and Bloomingdale’s The Outlet, both of which have been bright spots in the company’s earnings reports in recent years. In 2020, the retailer will roll out 50 Backstage locations within existing Macy’s stores and will open seven standalone venues.

Additionally, Macy’s will test a new store concept called Market by Macy’s and will debut its first store near Dallas, Texas, on Thursday. These stores are designed to „be located off-mall in lifestyle centers,“ with a focus on health, beauty, and local food vendors.

Reset cost base

In addition to store closures, Macy’s plans to consolidate its campuses and designate New York City as its sole company headquarters. The move will effectively shutter offices in San Francisco; downtown Cincinnati; and Lorain, Ohio. It also includes closures of a customer contact center in Tempe, Arizona and customer service centers in Mason, Ohio; and Clearwater, Florida.

In total, these closures are expected to impact 2,000 employees.