Macy's, Inc. announced a series of cost-efficiency and process improvement measures to be implemented beginning in early 2016 that will reduce SG&A expense by approximately $400 million. To address the need for greater efficiency and productivity, among the changes being implemented by Macy's, Inc. in early 2016 are: consolidating the grouping of existing Macy's stores into five regions and 47 local districts (down from the current structure of seven regions and 58 local districts), as well as other field support functions. This reflects a smaller portfolio of stores and new technologies and techniques for managing the store business and tailoring assortments to local customer preferences. Adjusting staffing levels at each Macy's and Bloomingdale's store in line with current sales volume to increase productivity and improve efficiency. An average of three to four positions will be affected in each of Macy's and Bloomingdale's approximately 770 going-forward stores (out of an average workforce of approximately 150 associates in each store), for a total of about 3,000 affected associates nationwide. Roughly 50% of affected store associates are expected to be placed in other positions. Implementing a voluntary separation opportunity for about 165 senior executives in Macy's and Bloomingdale's central stores, office and support functions who meet certain age and service requirements and chose to leave the company beginning in spring 2016. Approximately 35% of these executive positions will not be replaced. Reducing an additional 600 positions in back-office organizations by eliminating tasks, simplifying processes and combining positions, with about 150 of these associates reassigned to other positions. Consolidating the four existing Macy's, Inc. credit and customer services center facilities into three. The call center in St. Louis will be closed in spring 2016, affecting approximately 750 employees. Work currently performed in St. Louis will be divided among existing credit and customer services centers in Tempe, AZ, Clearwater, FL, and Mason, OH, where a total of about 640 positions will be added.

The company listed 40 Macy's store closings (out of a current total of about 770 Macy's stores). Of the 40, 36 will be closed in early spring 2016, consistent with its announcement in September 2015. The 36 Macy's stores being closed in early 2016, along with four others closed in the final three quarters of 2015, account for approximately $375 million in annual sales, some of which are expected to be retained in nearby stores and with online/mobile sales. The company is committed to treating associates affected by store closings with respect and openness. Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closings will be offered severance benefits. Final clearance sales at the following Macy's stores closing in early 2016 will begin on Jan. 11, 2016 and run for between eight to 12 weeks (with the exception of Westfield Century City, North DeKalb Mall and Roseburg Valley Mall, where final clearance sales are already in progress): Irvine Spectrum, Irvine, CA, Country Club Plaza, Sacramento, CA, Westfield Century City, Los Angeles, CA: this store will be closed in January 2016 and replaced with a new, larger store to open in this same shopping center in spring 2017; Enfield Square main store, Enfield, CT, Enfield Square furniture/home/men's store, Enfield, CT, North DeKalb Mall, Decatur, GA, Kailua, HI, Palouse Mall, Moscow, ID, Northwoods Mall, Peoria, IL, Cortana Mall, Baton Rouge, LA, Valley Mall, Hagerstown, MD, Berkshire Mall, Lanesborough, MA, Eastfield Mall, Springfield, MA, The Shoppes at Stadium, Columbia, MO, Middlesex Mall, South Plainfield, NJ, McKinley Mall main store, Buffalo, NY, McKinley Mall home store, Buffalo, NY, Arnot Mall, Horsehead, NY, Hudson Valley Mall, Kingston, NY, Eastern Hills Mall, Williamsville, NY, Cary Towne Center, Cary, NC, Chapel Hill Mall, Akron, OH, Midway Mall, Elyria, OH, Quail Springs Mall, Oklahoma City, OK, Pony Village Mall, North Bend, OR, Roseburg Valley Mall, Roseburg, OR, Suburban Square, Ardmore, PA, Century III Mall, West Mifflin, PA, Ridgmar Mall, Ft. Worth, TX, Chesapeake Square, Chesapeake, VA, Virginia Center Commons, Glen Allen, VA, Peninsula Town Center, Hampton, VA, Military Circle Mall, Norfolk, VA, Regency Square main store, Richmond, VA, Regency Square furniture/home/men's store, Richmond, VA, Downtown Spokane, Spokane, WA.

Five new Macy's and Bloomingdale's stores are currently planned and/or under construction. New Macy's stores will be opening in: Ka Makana Ali'i, Kapolei, HI (103,000 square feet; to open in fall 2016; approximately 180 associates). Westfield Century City, Los Angeles, CA (a 155,000 square-foot store to open in spring 2017 to replace an older and smaller Macy's store in this very successful shopping center). Fashion Place, Murray, UT (160,000 square feet; to open in spring 2017; approximately 150 associates). New Bloomingdale's stores will be opening in: Westfield Valley Fair Shopping Center, San Jose, CA (150,000 square feet; to open in fall 2017; approximately 250 associates). The SoNo Collection, Norwalk, CT (150,000 square feet; to open in fall 2018; approximately 200 associates). In addition, in the next two years, the company plans to open about 50 additional Macy's Backstage off-price locations (most of which will be inside existing Macy's stores), and about 40 freestanding Bluemercury beauty specialty stores. Internationally, new Macy's and Bloomingdale's stores are planned to open in Al Maryah Central in Abu Dhabi, United Arab Emirates, in 2018 under license agreements with Al Tayer Group.