Macy’s to shut 150 stores, shift focus to luxury sales by 2026
OAN’s James Meyers
10:00 AM – Tuesday, February 27, 2024
Macy’s is making a bold move by closing almost 150 locations across the country. The retail giant plans to focus more on its luxury chains, Bloomingdale’s and Bluemercury. This strategic shift aims to revitalize the brand and provide customers with improved shopping experiences, relevant assortments, and compelling value.
The announcement comes with the appointment of a new CEO, Tony Spring, who is leading Macy’s into this “bold new chapter.” As part of this transition, approximately 50 stores will be closed by the end of the fiscal year, leaving Macy’s with a total of 350 stores. However, the company plans to compensate for the closures by adding nearly 45 new Bloomingdale’s and Bluemercury locations.
“A Bold New Chapter serves as a strong call to action. It challenges the status quo to create a more modern Macy’s, Inc. We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” Spring said in a statement. “Our teams are energized by the work ahead as we accelerate our path to market share gains, sustainable, profitable growth and value creation for our shareholders.”
Macy’s has been facing pressure due to underperformance in recent years. The under-performing locations accounted for 25% of the company’s square footage but only contributed to 10% of its sales, according to The New York Times. This latest announcement follows a series of closures in January, which resulted in the shutdown of five stores and the elimination of 2,350 positions.
In addition to the closures, Macy’s has been expanding its small-format stores across the U.S. to adapt to changing consumer preferences. While department stores have seen revenue growth in recent years, Macy’s decision to close stores has caused a decline in its shares.
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How does Macy’s plan to adapt to changing consumer preferences and shopping patterns through its focus on luxury chains like Bloomingdale’s and Bluemercury
E ment is part of Macy’s larger strategy to focus on profitable growth and improve overall performance.
The decision to close nearly 150 locations and shift focus to luxury chains such as Bloomingdale’s and Bluemercury is a bold move for Macy’s. The aim of this strategic shift is to revitalize the brand and provide customers with improved shopping experiences, relevant assortments, and compelling value.
With the appointment of a new CEO, Tony Spring, Macy’s is entering a “bold new chapter.” As part of this transition, approximately 50 stores will be closed by the end of the fiscal year, leaving Macy’s with a total of 350 stores. However, to compensate for the closures, the company plans to add nearly 45 new Bloomingdale’s and Bluemercury locations.
Tony Spring emphasizes the importance of this transition and its potential impact. He states, “A Bold New Chapter serves as a strong call to action. It challenges the status quo to create a more modern Macy’s, Inc. We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments, and compelling value. Our teams are energized by the work ahead as we accelerate our path to market share gains, sustainable, profitable growth, and value creation for our shareholders.”
The decision to close underperforming locations was driven by the need to improve overall performance. These under-performing locations accounted for 25% of the company’s square footage but only contributed to 10% of its sales, according to The New York Times. By closing these locations, Macy’s aims to allocate resources more effectively and focus on stores that generate higher sales and profitability.
Macy’s recognizes the need to adapt to changing consumer preferences and shopping patterns. By prioritizing luxury chains like Bloomingdale’s and Bluemercury, Macy’s aims to cater to customers seeking premium and personalized shopping experiences. These chains are known for their upscale offerings and exceptional customer service, which aligns with Macy’s desire to provide improved shopping experiences.
In addition to closing under-performing locations, Macy’s also plans to invest in e-commerce and digital strategies. This reflects the growing importance of online shopping and the need to meet customers’ expectations in the digital realm. By combining strong brick-and-mortar presence with robust online capabilities, Macy’s intends to create a seamless and omni-channel shopping experience for its customers.
While the decision to close nearly 150 locations may be seen as a significant shift for Macy’s, it is a necessary move to adapt to changing market dynamics and improve overall performance. By focusing on luxury chains and investing in e-commerce, Macy’s aims to revitalize the brand, provide improved shopping experiences, and drive profitable growth. With the appointment of Tony Spring as the new CEO, Macy’s is embarking on a “bold new chapter” that will shape its future and position in the retail industry.
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