Macy’s, the popular department store chain in the U.S., has announced it will close part of one of its distribution centers in South Windsor, Connecticut. This closure will affect more than 100 workers and it’s part of the company’s plan to modernize and simplify its operations. So, let’s find out more about this decision and what are Macy’s’ plans for the future.
Closing dates
The partial closure will start on December 28 of 2025 and it will end on January 10 of next year. In total, 106 employees will lose their jobs permanently. It’s important to highlight that only one part of the distribution center will be closed, other operations will continue working as usual.
Workers losing their jobs will be informed about possible opportunities to move to other Macy’s places, so that they can still work in the company if they wish.
Why is Macy’s doing this?
Macy’s has decided to make some changes with a program called Bold New Chapter, whose aim is to simplify and modernize the entire store chain and distribution centers. Part of the closure involves moving Backstage operations from South Windsor to another facility in Columbus, Ohio, which focuses on off-price operations.
With this, the company aims to make its operations more efficient and automated, helping serve customers better while reducing costs.
As a Macy’s spokesperson said:
“Macy’s, Inc. is continuing to simplify and modernize our supply chain to operate more efficiently and serve customers better. As part of this work, we are concluding Backstage operations at our South Windsor, CT facility and centralizing them in Columbus, OH. Other operations at South Windsor will continue.”
Affected positions
Those Macy’s workers who will unfortunately lose their jobs are those with positions in:
- Warehouse associates
- Operations managers
- Warehouse leads
The closure doesn’t affect everybody, but it’s very significant for the involved workers.
More modern operations
Not only is Macy’s closing parts of its distribution center, but also making other parts more automatic and efficient. For example, the North Carolina distribution center (which opened on October 16) is very modern and it has a high potential of productivity.
The company has been testing automated technology in other centers and it has learnt how to improve safety and efficiency for employees. Now, a new warehouse management system is being used to make the work faster, more precise, and more flexible.
According to Sean Barbour, Senior Vice President of Supply Chain Operations at Macy’s, said:
“Over the past two years, we’ve tested automation at other sites and learned how it can make our operations more efficient and safer. Now, we’re applying these lessons in our most advanced facility yet, including a new system that improves accuracy, flexibility, and speed.”
Macy’s’ context
Macy’s is not the only company that has had issues after the pandemic, several chains have closed some stores or have filed for bankruptcy, such as:
- JoAnn Fabrics closed 800 stores after filing for bankruptcy twice.
- Hooters plans to file for bankruptcy.
- Liberated Brands closed 122 stores for brands like Quiksilver, Billabong, and Volcom.
- Forever 21 closed its headquarters and laid off 358 employees.
Apart from closing, Macy’s is restructuring too:
- Over 100 stores have already closed this year.
- About 350 stores remain open during the remodeling process.
- The company plans to close 150 more stores by the end of 2026, expected to generate $700 million according to CEO Tony Spring.
- Macy’s is also working on 30 smaller stores, 15 Bloomingdale’s locations, and 30 Bluemercury stores.
Basically, Macy’s is adopting a plan to work in a more modern and efficient way, which will affect some jobs but aims to strengthen the company for the future.