- The retailer announced that there will only be 350 Macy’s stores by 2026
- Macy’s turns towards luxury: opens Bloomingdale’s and Bluemercury stores
- Sales fell to $8.12 billion in the fourth quarter, down 2 percent from a year ago.
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Macy’s will close 150 stores over the next three years, the department store said Tuesday, after posting a fourth-quarter loss and declining sales.
The troubled retailer, which has been around for more than a century and a half, said it would close 50 locations across the United States by the end of this year.
By 2026, there will be only 350 Macy’s stores, the company said.
In addition to this, Macy’s announced that it would focus on its upscale stores Bloomingdale’s and Bluemercury, opening more smaller versions of these locations.
It said it would open 15 of its high-end Bloomingdale’s stores and 30 of its Bluemercury luxury cosmetics stores in the coming years.
Macy’s will close 150 stores over the next three years, the department store announced Tuesday.
The company’s sales fell to $8.12 billion in the fourth quarter, down nearly 2 percent from a year ago.
Macy’s had a quarterly loss of $71 million, or 26 cents per share, it announced.
The company’s growth plan attempts to take advantage of a shift in shopping habits across the United States, as department stores continue to face competition from online rivals.
Macy’s stock price has fallen 75 percent from a high of $73 per share in 2015, amid the rise of e-commerce giants like Amazon and the success of budget retailers.
“We are taking the necessary steps to revitalize our customer relationships through better shopping experiences, relevant assortments and compelling value,” new CEO Tony Spring, who succeeded Jeff Gennette earlier this month, said in a statement.
By expanding its high-end offerings, Macy’s is trying to appeal to wealthier shoppers, who have proven resilient and willing to buy despite rising inflation.
“Bloomingdale’s expansion may work, as there are several strong luxury markets in which the chain is not represented,” GlobalData Retail analyst Neil Saunders said in a note to clients.
Meanwhile, Macy’s is also cutting jobs to reduce costs.
Today’s announcement comes weeks after the company announced the closure of five stores and more than 2,300 layoffs last month.
The job cuts will affect about 3.5 percent of its overall workforce and 13 percent of its corporate staff.
In October last year, the retailer also said it would open up to 30 smaller versions of its namesake stores in shopping centers across the country over the next two years, focusing more on its “small format” stores outside of city centers. cities.
This marks a change in direction for the company, known for its large locations, often in urban shopping centers.
“We believe reducing Macy’s store base to a more manageable (and profitable) size is prudent given the overall structural shift toward online spending and away from department stores,” Dana Telsey, a retail analyst, said in a note to the clients. .
This is breaking news. Updates to come.