Macy's just revealed a massive plan to turn around its business - here are the 5 main parts

In an attempt to diversify its product assortment and elevate the brand, Macy's plans to develop four $1 billion "high-margin private brands" while also improving its current inventory selection.

The retailer plans to capitalize on digital growth by increasing investments in Macy's websites and mobile apps. As part of this strategy, the company announced it would relocate its Macys.com headquarters from San Francisco to New York City "to allow for better coordination and increased collaboration and better access to Macy's brand partners." Additionally, Macy's will add positions to its technology hub in Atlanta.

After conducting a "rigorous evaluation" and audit of the Macy's store portfolio, the company decided to close 125 of its underperforming stores over the next three years. This number, which accounts for $1.4 billion in sales, includes 30 stores that were already in the process of shuttering, according to the Macy's press release.

Moving forward, Macy's plans to expand off-price stores including Macy's Backstage and Bloomingdale's The Outlet, both of which have been bright spots in the company's earnings reports in recent years. In 2020, the retailer will roll out 50 Backstage locations within existing Macy's stores and will open seven standalone venues.

Additionally, Macy's will test a new store concept called Market by Macy's and will debut its first store near Dallas, Texas, on Thursday. These stores are designed to "be located off-mall in lifestyle centers," with a focus on health, beauty, and local food vendors.

In addition to store closures, Macy's plans to consolidate its campuses and designate New York City as its sole company headquarters. The move will effectively shutter offices in San Francisco; downtown Cincinnati; and Lorain, Ohio. It also includes closures of a customer contact center in Tempe, Arizona and customer service centers in Mason, Ohio; and Clearwater, Florida.

In total, these closures are expected to impact 2,000 employees.