Macy’s has revealed that it will close more stores than initially planned, with the number of closures now set at 65 by the end of the year, up from the 50 previously announced. During the company’s third quarter earnings call, CEO Tony Spring emphasized that these closures are part of a strategic move that will typically take place after the holiday season.
Earlier this year, Macy’s announced a broader strategy to close 150 underperforming stores—approximately 30% of its total locations—by 2026. The goal of this initiative, referred to as “A Bold New Chapter,” is to enhance the shopping experience and focus on about 350 key stores poised for growth.
Despite these closures, Macy’s is also looking to expand its luxury-focused brands, planning to open 45 new Bloomingdale’s and Bluemercury stores over the next three years. This expansion highlights the company’s commitment to investing in areas of growth while streamlining less profitable segments.
Additionally, the third quarter report addressed a significant accounting issue, where an employee allegedly concealed $151 million in delivery expenses over a nearly three-year span. However, Macy’s stressed that an independent investigation found no material impact on the company’s financial results due to this incident, and the employee in question is no longer with the company.
In summary, while Macy’s is taking steps to reduce its physical footprint, it is also seeking to capitalize on growth opportunities in the luxury market. This dual approach may ultimately create a more focused and sustainable business model moving forward.
Positive outlook: As Macy’s pivots towards more productive store locations and luxury brand expansion, it may well position itself to adapt to changing customer preferences and strengthen its market presence in a competitive retail environment.