OAN’s James Meyers
10:00 AM – Tuesday, February 27, 2024
Macy’s plans to close almost 150 locations nationwide in order to move towards leaning more heavily on its luxury Bloomingdale’s and Bluemercury chains.
The retail store made the announcement Tuesday morning, stating it was entering a “bold new chapter” with a new CEO, Tony Spring.
The announcement also stated that Macy’s will shut down approximately 50 stores by the end of the company’s current fiscal year.
Once the planned closures occur, Macy’s will be down to 350 stores altogether. In response to the closures, the retail giant will add almost 45 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.”
Additionally, Macy’s has been under pressure due to its underperformance over the past few years. According to The New York Times, the under-performing locations accounted for 25% of the company’s square footage but just 10% of its sales.
The latest announcement comes less than a month after the retail store announced another series of closures in January. That resulted in the closure of five locations and removing 2,350 positions, or 3.5% of the company’s workforce.
Furthermore, in October, the retailer announced that it’s increasing its small-format store expansion by opening up 30 smaller stores across the U.S.
Department stores have seen an increase in revenue in recent years, with the COVID-19 Pandemic causing stores such as J.C. Penney and Neiman Marcus, both of which filed for bankruptcy protection in 2020.
Macy’s announcement caused shares to trade at more than 2% lower in premarket action.
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