Macy's to close 125 stores over the next 3 years 

Macy’s will close 125 of its “least productive” stores over the next three years, as the struggling retailer puts more focus on its off-price concept and online sales, the company announced Tuesday.

The closings were announced as part of the retailer’s multi-point plan, called the Polaris strategy, to right Macy’s struggling ship and save the retailer $1.5 billion by 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. Over the past three years, we have shown we can grow the top line; however, we have significant work to do to improve the bottom line,” Jeff Gennette, chairman and chief executive officer of Macy’s Inc., said in a statement.

The plan includes expanding its customer loyalty program, Macy’s Star Rewards; investing more in the retailer’s websites and mobile apps, since the digital business contributes more than $6 billion annually in sales; and upgrading 100 higher-performing stores in 2020.

Also, Macy’s will open 50 more of its off-price Backstage stores within regular Macy’s stores and seven more free-standing Backstages.  The retailer also plans to close its San Francisco, Cincinnati and Lorain, Ohio, offices, and make Manhattan its sole headquarters.

Macy’s did not respond to Newsday inquiries about whether any Long Island stores are on the list slated for closure.  

But Newsday already has reported two planned local closings.

On Jan. 8, Macy Inc. announced that a Macy’s at the Broadway Commons shopping center in Hicksville will be among 29 stores, including a Bloomingdale’s in Miami, closing “in the coming weeks.”  

The retailer also said that a Macy’s in the Commack Shopping Center will close this summer because the landlord is not renewing the lease.

In September, Newsday reported that the landlord for the Commack Shopping Center, Commack Shopping Center Associates, planned to demolish the Macy’s and replace it with a BJ’s Wholesale Club, pending approval from Smithtown.

There are currently 10 full-line Macy’s stores on Long Island, including Hicksville and Commack.

There were 636 Macy’s stores nationwide at the end of the third quarter, compared with 737 in 2015.

The retailer, like many department store chains, has been struggling and closing stores for years as it continues to lose foot traffic to online retailers and off-price stores.

“Customers remain focused on value and convenience. … the way customers shop is very different from five years ago,” said Christina Boni, a senior credit officer at Moody’s Corp., a financial services company.

It has become more challenging for department stores to be nimble and meet customer expectations with such large store spaces, she said.

By Tory N. Parrish

tory.parrish@newsday.comToryParrish1

Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.