150 Macy’s Stores Set to Close as Part of Company’s Strategy
Macy’s announced a plan Tuesday to close 150 underperforming Macy’s stores nationwide by 2026, replacing plans to renovate an estimated 350 more stores to accommodate the everyday shopping experience.
New York The retailer announced that it plans to strengthen its brand by opening 15 new Bloomingdale stores, as well as opening a Bloomie’s pop-up store. Macy’s also plans to open 30 new Bluemercury beauty stores simultaneously.
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While these closed stores account for approximately 25% of Macy’s total square footage, they account for less than 10% of total sales. The company plans to close 50 stores by the end of 2024 and add another 100 stores by 2025 and 2026.
The company, which has 90 Macy’s stores across California, is not immediately announcing specific locations, including those in San Francisco. Bay Area where the plan will be closed. But in addition to these closures, Macy’s is committed to further updating its stores to improve product offerings and the overall shopping experience.
Macy’s CEO Tony Spring, who was recently replaced by Jeff Gennette, confirmed that the company is focusing on product development, product value, and reasonable prices to improve customer relationships.
These suggestions for countering the influence of aggressive investors are exemplified by Arkhouse Management’s nomination of nine directors to the previous generation of Macy’s board. Also last month, Macy’s rejected its $5.8 billion acquisition of hedge fund and investment management firm Brigade Capital Management.
The new manager faces many challenges, including the need to increase sales in an environment of intense competition, especially from online retailers. The pandemic has worsened the existing crisis; Leading retailers such as Neiman Marcus, JCPenney, and Bed Bath & Beyond have filed for bankruptcy. Despite economic changes, potential customers remain despite changes in purchasing behavior, including multiple purchase considerations. Spring said inflation is slowing, but job growth and employment are slowing.
