Macy’s closing 150 ‘underproductive locations’

Macy’s said Tuesday it will close 150 “low-productivity stores” over the next three years due to declining sales and expansion of its high-end luxury brands.

department store chainsaw almost 2 percent decrease Revenue increased in the fourth quarter of last year compared to the fourth quarter of 2022. For all of 2023, net sales were down his 5.5% and digital sales were down his 7%.

Tony Spring, Macy’s new CEO, stepped into the role It expressed optimism in a statement accompanying a sales report released on Tuesday, coinciding with the announcement of the impending closure this month.

“Throughout the fourth quarter, we delivered an improved omnichannel experience through effective merchandising and clear demonstration of value, resulting in a strong year-end end,” Spring said. said in a statement.

As part of the new strategy, Macy’s will close 50 stores by the end of the fiscal year. This will leave approximately 350 Macy’s stores remaining, but the company says it will continue to invest and expand.

Despite declining sales, Macy’s announced it would shift its focus to its luxury brands Bloomingdale’s and Bluemercury, adding 15 more Bloomingdale’s and Bluemercury stores over the next three years as part of the strategy. announced that it will open at least 30 new stores. Year.

Macy’s said the Bloomingdale’s nameplate “showed strength in the beauty, women’s contemporary sportswear, and Bloomingdale’s outlet businesses,” while Bluemercury “continued to have strength in the skin care and color cosmetics categories.” I showed it,” he said.

“By further expanding our store fleet and digital presence, Macy’s will continue to lead the way in the luxury market, where Bloomingdale’s and Bluemercury continue to excel within the Macy’s portfolio and across the broader luxury industry. The plan is to take advantage of this position.” stated in the announcement.

Department stores were struggling to compete with online markets even before the pandemic, and a small number of retailers have filed for bankruptcy protection in recent years. Earlier this year, Macy’s rejected a $5.8 billion takeover offer from investment firms Arkhouse Management and Brigade Capital Management, the Associated Press reported.

The Associated Press contributed.