Macy's to Shut Down 150 Stores

Macy’s is undergoing a transformation to become smaller yet more upscale, aiming to stay relevant in today’s rapidly changing retail landscape.

To achieve this, Macy’s plans to close 150 underperforming stores by 2026, reducing its total number to 350.

The focus will shift towards strengthening Bloomingdale’s and Bluemercury, which have shown better performance compared to Macy’s.

This strategy aligns with changes in consumer behavior, particularly the growing demand for luxury brands amid a shrinking middle class.

Macy’s will also introduce smaller standalone stores outside of malls, reflecting a preference for more compact shopping destinations.

The company’s aim is to appeal to wealthier customers while streamlining operations for increased profitability.

Macy’s struggles have attracted attention from activist investors, prompting the company to reject a bid to go private and face a proxy fight for control of its board.

The new CEO, Tony Spring, emphasizes a customer-centric approach focused on enhancing the shopping experience and offering compelling value.

Macy’s plans to invest in its digital presence and slim down its product offerings to better meet customer preferences.

Expansion plans include opening new Bloomingdale’s and Bluemercury stores while remodeling existing ones, aiming for sustained profit growth in the future.