Macy’s Announces Closure of 150 Stores and Focus on Luxury Brands
In a recent announcement, Macy’s revealed its plan to close 150 stores over the next three years, with 50 closures expected by the end of 2024. The decision comes after the department store chain reported a loss in the last quarter and a drop in sales.
The company stated that it will be focusing its efforts on its luxury brands under its umbrella, including the Bloomingdale’s department store chain and the Blue Mercury cosmetics chain. Macy’s plans to open 15 new Bloomingdale’s branches and 30 new Blue Mercury locations in the near future.
Macy’s also gave a cautionary outlook for the remainder of the year, citing a need to revitalize relationships with customers through better shopping experiences, more variety, and better value.
As of now, the specific locations of the 150 stores set to close have not been disclosed, and the company did not provide an estimate of potential job cuts. However, it was reported that some of the stores slated for closure are situated near others that will remain open, potentially allowing for employee transfers.
The chain is also currently facing a purchase attempt by Arkhouse Management and Brigade Capital Management. After Macy’s rejected a $5.8 billion takeover offer, Arkhouse nominated nine executives to the company’s board. The nominees have experience in retail sales, capital markets, and real estate.
Macy’s new executive president, Tony Spring, faces the challenge of boosting sales in the midst of strong online competition and consumer preference for cheaper goods. Despite this, the company announced plans to open 30 smaller format stores by the fall of 2025.
While Macy’s sales fell slightly in the fourth quarter, they were better than anticipated by analysts. The company anticipates profits in the range of $22.2 billion to $22.9 billion for this year.