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Macy’s plans to close about 150 stores over the next three years as part of a strategic shift to focus on upscale chains Bloomingdale’s and Blue Mercury.
The company publicly announced the change on Tuesday morning, saying it was entering a “bold new chapter” with new CEO Tony Spring. Once all planned closures are complete, Macy’s will reduce its store count to 350 stores. The company plans to add approximately 45 Bloomingdale’s and Blue Mercury stores over time.
“This bold new chapter serves as a powerful call to action. It challenges the status quo to create a more modern Macy’s. , we are making the necessary moves to reinvigorate our relationships with customers through compelling value,” Spring said in a statement. “Our team is energized by the work ahead as we accelerate our path to market share gains, sustained and profitable growth, and value creation for our shareholders.”
Macy’s said it is targeting underperforming stores for closure. According to the New York Times, these locations account for 25% of the company’s square footage but only 10% of its sales.
Macy’s to close five stores as more than 2,300 employees are laid off
Macy’s plans to close about 150 stores over the next three years as part of a larger strategic shift to focus on its Bloomingdale’s and Bluemercury chains. (Macy’s Inc.)
At least 50 Macy’s stores will close this year, with the rest expected to close by the end of 2026, the company said.
Macy’s opens up to 30 small stores
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| M | Macy’s Inc. | 19.30 | -0.20 | -1.03% |
The announcement comes just a month after the company announced a new round of closures in mid-January. The plan called for the company to close five locations and eliminate approximately 2,350 positions, or 3.5% of its workforce.
At least 50 Macy’s stores will close this year, with the rest expected to close by the end of 2026, the company said. (Reuters/Shannon Stapleton/Reuters Photo)
The company said the job cuts were made as part of its business plan to streamline its operations. its supply chain By implementing further automation.
Leading retailer uses AI to dramatically reduce clothing returns when shopping online
In October, the retailer Expansion of small stores By opening 30 small stores across the United States
Macy’s said more than 2,000 job cuts are necessary due to management plans to streamline its supply chain by introducing more automation. (Bridget Bennett/Bloomberg via Getty Images/Getty Images)
The news follows an August announcement that the company would open four smaller stores ranging from 30,000 square feet to 50,000 square feet, about one-fifth of its traditional stores, in the Northeast and West regions. It was done based on.
The company is repositioning its portfolio to better adapt to the changing retail environment and compete with companies like Target, Nordstrom and Kohl’s, which have added smaller stores in recent years.
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Department stores have lost their edge in recent years as the coronavirus pandemic devastated big-name brands like J.C. Penney and Neiman Marcus, both of which filed for bankruptcy protection in 2020.
