The Barron’s Roundtable panel provides insight into investments in Macy’s, Nordstrom, and Gilead Sciences.
Macy’s could potentially decide that Macy’s department store in San Francisco’s Union Square area will be closed.
The iconic store appears to be facing challenges as part of Macy’s “Bold New Chapter” strategy announced earlier Tuesday that includes closing numerous stores, according to local media reports.
Macy’s officials said “an evaluation is currently underway that weighs the potential real estate value and the profitability potential of future sales growth,” adding that the retailer is considering closing the 400-square-foot store at some point. If it is decided to proceed, it will be added. In the future, “the earliest this could happen is 2025.”
According to local reports, the store is currently welcoming shoppers and will continue to do so until it is under new ownership.
Night view of the brightly lit facade of the Macy’s department store flagship store in Union Square in San Francisco, California on Christmas Day, December 25, 2018. (The Smith Collection/Gado/Getty Images/Getty Images)
Macy’s to close 150 stores by 2026, open new Bloomingdale’s and Bluemercury stores
Macy’s expansive store has been in Union Square, part of downtown San Francisco, for nearly 80 years. Over the past year or so, the city’s downtown has seen a number of businesses leave their locations, for reasons ranging from changing consumer habits to local business conditions to safety concerns.
SAN FRANCISCO, CA – NOVEMBER 24: Shoppers exit Macy’s in Union Square on November 24, 2023 in San Francisco, California. The National Retail Federation predicts that an estimated 182 million people plan to shop in stores and online. (Ethan Swope/Getty Images/Getty Images)
Macy’s newly announced plan to close a large number of stores overall will affect about 150 “low productivity” stores across the country. The company aims to complete closures by the end of 2026, and said 50 locations are scheduled to close this year.
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| ticker | safety | last | change | change % |
|---|---|---|---|---|
| M | Macy’s Inc. | 19.96 | +0.65 | +3.36% |
Chief Executive Officer Tony Spring said that for the approximately 350 Macy’s stores that will remain open, comparative sales in fiscal 2023 will be “approximately 500 basis points higher than non-operated stores” and that “after four-wall adjustment.” EBITDA margin was approximately 950 basis points higher.”
The Macy’s corporate logo is seen at a Macy’s store in Herald Square in New York City on January 19, 2024. Department store chain Macy’s announced that it will lay off approximately 2,350 employees, or approximately 3.5% of its workforce.company (Michael M. Santiago/Getty Images/Getty Images)
Under its “Bold New Chapter” initiative, the retail giant said it will focus on investing in retained Macy’s stores and “continued expansion” of smaller stores. It also aims to add more stores and incorporate more upscale Bloomingdale’s and Bluemercury brands.
Macy’s to cut 2,350 jobs, close 5 stores as technology embraces: Report
As of February 3, the company had 718 retail stores, including approximately 500 Macy’s brand stores, approximately 60 Bloomingdale’s brand stores, and approximately 160 Blue Mercury brand stores.
Macy’s stock has risen more than 3% since the start of the day as investors took in the news of Macy’s news strategy. This brings the company’s market capitalization to approximately $5.49 billion.
Anders Hagstrom contributed to this report.
