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Macy’s announced plans to accelerate store closures, increasing this year’s total from 50 to 65 locations.
CEO Tony Spring stated the closures will take place after the holiday season. Macy’s remains on track to close 150 stores over three years under its “Bold New Chapter” strategy, aiming for a more sustainable and profitable store fleet. CFO Adrian Mitchell emphasized that only underperforming locations are being closed.
“These are places where the economics are not as favorable. These are places where customers have shifted away from those centers to shop. And these are stores that are just incredibly difficult to run. So I’ll just start with that fundamental premise,” Mitchell said.
Mitchell continued, saying that “very few of the stores are actually in single-store markets. And the reason that’s important is because in an omni-business, we continue to see that when we have a physical presence and a digital presence, by far, we have the best economics.”
Macy’s plans to reduce its store count to 350 while adding 45 Bloomingdale’s and Bluemercury locations, both showing sales growth. Its strategy includes revamping 50 flagship “First 50” stores as models for future locations, which saw a 1.9% sales increase in Q3, signaling early success.
Macy’s accelerates store closures with 65 locations set to shutter by January 2025: https://t.co/YxFxm15PAM pic.twitter.com/ODLO4kxwCY
— Local 12/WKRC-TV (@Local12) December 13, 2024
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