HomeBusinessMacy’s is closing 150...

Macy’s is closing 150 stores as part of a major turnaround effort | CNN Business

Yuki Iwamura/AFP/Getty Images

Shoppers carry Macy’s bags during “Black Friday” in New York on November 24, 2023, the unofficial start of the holiday shopping season.


Macy’s is getting a new, smaller, but more luxurious look designed to turn around the troubled retailer and keep the century-and-a-half old brand relevant to rapidly changing demands from shoppers.

First, Macy’s will have to downsize. The company is closing 150 underperforming stores – 50 by the end of 2024 and the other 100 over the next few years. By 2026, it will prioritize its investment in just 350 Macy’s stores, the company announced.

Second, the company will focus on its successful Bloomingdale’s and Bluemercury brands – luxury stores that have outperformed the Macy’s brand. It will open more, smaller versions of those stores over the next several years.

It is part of a turnaround effort the store is calling a “bold new chapter,” designed to fend off activist investors and boost the company’s moribund stock price and sales.

Macy’s and the entire department store sector have been hit on all sides. Department stores have been pressured by the rise of Amazon, the growing strength of discount chains such as TJ Maxx, and online brands.

Macy’s stock price has dropped 75% from a peak of $73 a share in 2015. Since then, it has closed nearly 300 stores — almost one third of its locations — but still operates about 700 across its brands.

Last month, Macy’s announced it was laying off about 3.5% of its workforce, or roughly 2,350 employees.

The company’s struggles have attracted the attention of activist investors. Macy’s rejected an unsolicited $6 billion bid from an activist investor to take the famed department store private last month. The activist group is taking another shot at Macy’s, launching a proxy fight to take control of the board.

Macy’s (M) stock was down slightly in premarket trading.

New CEO Tony Spring said in a statement that the “bold new chapter,” which has full support of the company’s board, was developed after extensive market research and will reinvigorate the Macy’s brand.

In particular, the new strategy will focus on improving Macy’s digital store and slimming down its offerings.

“A Bold New Chapter serves as a strong call to action,” Spring said in a statement. “It challenges the status quo to create a more modern Macy’s.”

Spring said Macy’s will improve the shopping experience for customers by focusing on brands and items that shoppers say they want. And Macy’s, a higher-end brand that has struggled as prices have surged over the past few years, said it would focus on “compelling value.”

That should lead to sustained profit growth over time, Spring predicted.

The company said that as it closes Macy’s locations, it will open new stores for its luxury brands.

Macy’s said it will open 15 new Bloomingdale’s stores and 30 new Bluemercury locations over the next three years. It also plans to remodel 30 existing Bluemercury stores.

As inflation has surged in the past couple years, the retail market has split: Lower-end stores focused on cost-savings, such as Walmart, have done particularly well. But so have luxury brands, as shoppers with means have been able to keep up their spending, despite higher prices.

This is a developing story and will be updated.

Source link

Most Popular


Please enter your comment!
Please enter your name here

More from Author

Read Now

Fever select Caitlin Clark with No. 1 pick in WNBA Draft

BROOKLYN, N.Y. — Eight days after completing one of the greatest collegiate basketball careers ever recorded, Caitlin Clark was selected with the No. 1 pick in Monday’s WNBA Draft by the Indiana Fever.Clark is poised to not only help the Fever return to the postseason for...

In 1998, Bollywood star killed two blackbucks. A gang still seeks revenge.

Khan has been in the crosshairs of an armed gang since 1998 for shooting two blackbucks on a recreational hunting trip.Two members of a notorious criminal gang have been arrested for firing at the home of Bollywood actor Salman Khan in apparent retaliation for the superstar’s...

14 More Games Land on PS Plus Extra, Premium Today

As always, we ran a Poll over the weekend to gather your thoughts on the line-up, and (almost) as always, one-third of you responded by saying "it's a crap selection". 26 per cent of voters were at least somewhat happy with the selection, with Dave the...

Where Biden’s billions in chipmaking money have gone — and what could be next

The White House announcement this week of up to $6.4 billion in chipmaking cash for Samsung (005930.KS) marks a move to the next phase of the Biden administration's effort to bring semiconductor manufacturing back to the US.The focus so far has largely been on leading-edge logic...

WNBA expansion headed for 16 teams. Portland, Toronto and Philly are options

NEW YORK — The WNBA is looking to continue growing in the next few years. The league intends to reach 16 teams by 2028, commissioner Cathy Engelbert said before the draft, confirming The Athletic report from earlier Monday.The league announced earlier this year that the Bay...

Microsoft Makes High-Stakes Play in Tech Cold War With Emirati A.I. Deal

Microsoft on Tuesday said it would make a $1.5 billion investment in G42, an artificial intelligence giant in the United Arab Emirates, in a deal largely orchestrated by the Biden administration to box out China as Washington and Beijing battle over who will exercise technological influence...

A hockey puck hurtled toward her son’s head. A fan jumped to block it.

Just over a minute was left on the clock during a hockey game in Cleveland Thursday when a player struck the puck, sending it barreling into the stands and toward Asia Davis’s 4-year-old son. That’s when another fan jumped and extended his right arm to block...

Thailand’s Finance Ministry to lead 17 agencies in considering House report on legalizing casinos

Thailand’s Ministry of Finance has been appointed lead agency to consider a House committee study recommending the legalization of casino gaming but will work with 16 other agencies in doing so, local media reports. According to English-language outlet The Nation, the appointment was ordered by way of...

WWE RAW Results Coverage, Reactions and Highlights for April 15, 2024

It’s Monday night, and you know what that means! WWE RAW will go down tonight, and Ringside News has got you covered with live play-by-play results coverage for the April 15, 2024 episode. The start time for WWE RAW is 8:00 PM EST. Match-by-match highlights...

Coachella Weekend 1 Recap, J Balvin’s Out Of This World Coachella Set, Metro Boomin & Future Top Hot 100 | Billboard News

It’s Monday April 15th, Billboard counts down the top 10 on the Hot 100, we’re running down all the headliners and special guest performers and some notable audience members that went down at the first weekend of Coachella, J Balvin gives us a behind the scene...