After facing the economic fallout from the pandemic, Macy’s announced plans to close about 150 stores over the next three years in an effort to improve profitability and prevent potential takeover bids. The decision comes as part of the company’s focus on expanding its upscale Bloomingdale’s and Bluemercury chains, under the leadership of new chief executive Tony Spring.
This move marks the second major downsizing of the Macy’s chain since 2020, and will leave the company with 350 stores, down from pre-pandemic levels. The closures will target “underproductive locations,” accounting for 25% of square footage but just 10% of sales.
Macy’s expects the closures to generate $600 million to $750 million from selling stores and streamlining warehouses. The company aims to reinvest these funds in its more successful and profitable brands to further drive growth.
In a statement, Macy’s expressed confidence in its new strategy, stating that the closures are necessary to ensure the long-term success of the company. By focusing on expanding its higher-end brands and shedding underperforming locations, Macy’s aims to come out of this restructuring stronger and better positioned for future growth.
Overall, Macy’s hopes that these changes will not only improve profitability but also strengthen its position in the market and fend off any potential takeover bids. Time will tell if these efforts will pay off and lead Macy’s to a more prosperous future.