American department store chain Macy’s is going to focus more on luxury and is taking drastic measures to do so, closing almost a quarter of its department stores. On the other side, the retailer will also open new, “better” stores.
Dozens of new locations
Over the next three years, Macy’s will close 150 underperforming department stores, almost a quarter of all its branches. Fifty stores will close before the end of this year, in addition to a previously announced reorganisation that cuts 2,350 jobs.
Macy’s wants to start a “bold new chapter”, with a greater focus on luxury. In that context, the department store group does plan to open fifteen Bloomingdale’s locations, as they operate in the higher-end segment. Macy’s also promised to prioritise investments in around 350 locations and plans to expand its network of new locations. There are also plans for thirty new Blue Mercury cosmetics shops.
Takeover rejected
It is a “call to action” for a “more modern Macy’s”, CEO Tony Spring told The Guardian. “We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value.”
Just last month, the group rejected an investment fund’s bid worth 5.8 billion dollars, even though net profit plummeted to 71 million dollars below zero in the last quarter of 2023, coming from 508 million dollars profit in 2022. Revenue fell 1.7 % to 8.12 billion dollars. The retailer also has a sombre outlook for 2024.
