Chico's Cuts 250 Jobs, Plans 120 Store Closures
Chico's is undertaking an organizational realignment to ensure that resources are better aligned with long-term growth initiatives, including omnichannel. The changes resulted in the elimination of nearly 250 existing positions, which is expected to result in approximately $38 million of annualized savings. The corporate organizational realignment slashed the headquarters and field management employee base headcount by 12%.
The retailer also announced that it will accelerate its rate of store closures in fiscal 2015, shuttering 35 shops this year, and 120 locations total through 2017, which is expected to save $55.2 million.
For fiscal 2015, the retailer will open 40 new stores, a significant decline from its store openings in previous years – 125 stores in 2012, 135 stores in 2013, and 109 stores in 2014.
The retailer also announced that it will accelerate its rate of store closures in fiscal 2015, shuttering 35 shops this year, and 120 locations total through 2017, which is expected to save $55.2 million.
For fiscal 2015, the retailer will open 40 new stores, a significant decline from its store openings in previous years – 125 stores in 2012, 135 stores in 2013, and 109 stores in 2014.