Macy’s has announced an increase in the number of store closures for this fiscal year, raising its original estimate from 50 to 65 locations. This decision comes as part of the retailer’s ongoing strategy to optimize operations and enhance customer experience. CEO Tony Spring confirmed this update during the company’s third-quarter earnings call, noting that these closures will take place after the holiday season.
Earlier this year, Macy’s outlined an ambitious plan to close about 150 underperforming stores by 2026, which accounts for nearly 30% of its total locations. The company aims to focus its resources on approximately 350 “go-forward” stores that will drive future growth. Spring has emphasized that “A Bold New Chapter” initiative aims to modernize the brand and improve customer relationships through better shopping experiences and relevant product offerings.
Despite the closures, Macy’s is looking to the future with plans to expand its luxury brands, Bloomingdale’s and Bluemercury. The company anticipates adding 45 new locations across these brands over the next three years, with plans for about 15 Bloomingdale’s stores and at least 30 Bluemercury outlets. Several Bluemercury stores are also set to undergo remodeling.
Additionally, Macy’s is addressing concerns regarding a financial misconduct incident involving an employee who allegedly concealed large delivery expenses. After an independent investigation, the company reported no material impact on its financial results despite the accounting irregularities. The implicated employee is no longer with the company, and no further misconduct has been identified.
Overall, while the closing of stores highlights the challenges faced by Macy’s, the company’s proactive strategy to focus on high-potential locations and expand its luxury offerings demonstrates a commitment to adapt and thrive in the evolving retail landscape.
This shift could ultimately lead to a stronger company positioned to meet changing consumer demands and preferences, indicating a hopeful outlook for Macy’s future.