Macy’s is closing 150 stores as part of a major turnaround effort

Macy’s is closing 150 stores as part of a major turnaround effort

Feb 27,2024
CNN  — 

Macy’s is getting a new, smaller, but more luxurious look designed to turn around the troubled retailer and keep the century-and-a-half old brand relevant to rapidly changing demands from shoppers.

First, Macy’s will have to downsize. The company is closing 150 underperforming stores over the next few years. By 2026, it will have just 350 stores, Macy’s announced.

Second, the company will focus on its successful Bloomingdale’s and Bluemercury brands – luxury stores that have outperformed the Macy’s brand. It will open more, smaller versions of those stores over the next several years.

It is part of a turnaround effort the store is calling a “bold new strategy,” designed to fend off activist investors and boost the company’s moribund stock price and sales.

Macy’s and the entire department store sector have been hit on all sides. Department stores have been pressured by the rise of Amazon, the growing strength of discount chains such as TJ Maxx, and online brands.

Macy’s stock price has dropped 75% from a peak of $73 a share in 2015. Since then, it has closed nearly 300 stores — almost one third of its locations — but still operates about 700 across its brands.

Last month, Macy’s announced it was laying off about 3.5% of its workforce, or roughly 2,350 employees.

The company’s struggles have attracted the attention of activist investors. Macy’s rejected an unsolicited $6 billion bid from an activist investor to take the famed department store private last month. The activist group is taking another shot at Macy’s, launching a proxy fight to take control of the board.

This is a developing story and will be updated.

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