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Report: Macy's shrinks stores to save money

Macy's Inc. plans to shrink its stores to save money on staffing and inventory, The Wall Street Journal reported Nov. 12 in its online edition.

The company plans to discuss the strategy publicly for the first time Nov. 14 when it is expected to report third-quarter results. Stores will relinquish up to a fifth of their space, employ fewer people and feature leaner product lines.

The shrinking experiment is underway in four stores, including one in Stamford, Conn.

To revitalize the shopping experience, Macy's struck deals with EssilorLuxottica SA's Sunglass Hut, LensCrafters and other companies to move into its stores. The retailer also will introduce more self-service options and pickup points for online orders.

While Macy's will downsize its poorly performing stores, it will renovate and invest in its profitable stores, expanding its selections and staffing. Renovations at 50 of Macy's more profitable "magnet stores" earlier in 2018 cost more than $200 million. Another 100 are due for upgrades in 2019.

On Oct. 18, Macy's rolled out 70 more virtual reality installations for its furniture selection nationwide.