Macy’s Inc. will permanently close a facility in Sacramento, California, according to a Worker Adjustment and Retraining Notification report filed on Jan. 16 with the California Employment Development Department.
The closure will take place in September, according to a Macy’s spokesperson, and impacts 79 employees.
“The decision to close this location is part of Macy’s Bold New Chapter strategy to simplify and modernize our operations,” the spokesperson said in an email to Retail Dive.
The retailer last spring said the strategy would heavily involve its supply chain and would result in closing distribution centers, increasing automation and streamlining operations to improve inventory and productivity. The company forecast $100 million in cost savings via its supply chain efforts in 2024, with an annual run-rate savings of around $235 million by 2026.
In a separate announcement, earlier this month the company revealed the first 66 stores that are closing as part of the company’s plan to shutter about 150 locations over three years. Many of those are mall anchors, while around 24 are small-format stores.
In its latest earnings, the company reported that net sales fell 2.4% year over year to $4.7 billion. Its namesake banner’s net sales fell 3.1% with comparable sales down 3%.
Editor’s note: Senior reporter Daphne Howland contributed to this story.
