Macy’s to shut down 150 ‘underproductive’ stores
Macy’s will be shutting down 150 “unproductive” stores through 2026, the retailer announced Tuesday, with 50 stores closing by the end of this fiscal year.
CEO Tony Spring says the move − dubbed by Macy’s as “A Bold New Chapter” − is “a strong call to action” that will allow the company to refocus its resources and prioritize investments in 350 “go-forward” stores.
“It challenges the status quo to create a more modern Macy’s, Inc,” Spring said in a statement, promising a reinvigorated relationship with customers “through improved shopping experiences, relevant assortments and compelling value.”
Macy’s did not share which locations would be closing when contacted by USA TODAY.
Despite the plan to shutter roughly 30% of Macy’s locations, the company announced plans to add about 15 Bloomingdale’s stores and at least 30 Bluemercury locations in the next three years, signaling increased investment in the luxury sector.
Macy’s is also trying to focus on incorporating small stores outside of malls. According to its website, it currently has 12 small-format locations.
“We are constantly evaluating the right number and mix of on- and offmall locations,” said a spokesperson for the company.
In January, Macy’s announced it would shut down five stores and cut 2,350 jobs, around 3.5% of its workforce.
The Macy’s stores set to close account for less than 10% of its sales, the company said.
“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said Macy’s CEO Tony Spring, former CEO of Bloomingdale’s who succeeded Jeff Gennette this month.
The plans come as the department store chain faces a proxy fight from Arkhouse Management, which nominated a slate of nine directors for election to Macy’s board last week.
Last month, Macy’s rejected a $5.8 billion takeover offer from the hedge fund and Brigade Capital Management, an investment manager.
Contributing: The Associated Press