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Macy’s To Downsize And Close 150 Stores 

Macy’s is making some major changes to keep their 150+ year brand relevant and alive during a time where retail shopping is constantly changing. For starters, the company will be downsizing and getting a new, smaller, more luxurious look, according to reports

Macy’s will be closing 150 underperforming stores. They’re planning on closing 50 by the end of 2024, and the remaining 100 over the course of the next few years. The ultimate goal is to have just 350 Macy’s stores by 2026. 

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The company will also be focusing more on its brands Bloomingdale’s and Bluemercury, as both have remained successful and have outperformed the Macy’s brands. They’re planning on opening more, smaller versions of those stores within the next several years. 

The general plan shows that Macy’s is accommodating wealthier shoppers through their more luxurious brands. Consumer trends show that shoppers are choosing smaller stores outside of shopping malls, so Macy’s will also be building 30 smaller stores within the next two years that won’t be inside of malls. 

Macy’s stock price has dropped 75% since its peak of $73 a share back in 2015. Since that point they’ve closed around 300 stores, which is almost a third of its locations. They still operate around 700 stores across all of their brands. 

With the downsizing, Macy’s also announced that it was laying off around 2,350 employees; about 3.5% of its total workforce.  

“We believe paring down the Macy’s store base to a more manageable (and profitable) size is prudent given the general structural shift towards online spending” and the shift away from department stores,” Dana Telsey, a retail analyst, said. 

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New Macy’s CEO Tony Spring, who was previously the CEO of Bloomingdale’s, said in a statement that this will be a “bold new chapter” for the brand, and was developed through extensive market research to “reinvigorate” the Macy’s brand.  

“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” Spring said in a statement, explaining that Macy’s will also be improving their digital marketplace.

They’ll also be downsizing the products sold in store as a means of focusing on brands and items that customers actually want. 

“That should lead to sustained profit growth over time,” Spring stated.

Over the next three years, Macy’s said it will open 15 new Bloomingdale’s stores and 30 new Bluemercury stores, with other plans to remodel 30 existing Bluemercury stores. 

“The Bloomingdale’s expansion can work as there are several strong luxury markets where the chain is not represented,” Neil Saunders, an analyst at GlobalData Retail, said.