Macy’s to Close a Third of Its Namesake Stores

Macy’s has reported to reduce its workforce by 3.5% as it plans to close five of its full-line stores. This is part of a new strategy to meet the demands of the consumers and the marketplace as well as fight off activist firms hoping to buy the company, Bloomberg reports.
 
According to Bloomberg, by 2026 Macy’s plans to add 30 new Bluemercury and 15 new Bloomingdale’s locations in an attempt to grow its higher-end brands. The company describes 2024 as “the year of transition and investment.”
 
This news follows a $5.8 billion buyout offer from Arkhouse Management Co. that Macy’s rejected in December. The company is expected to free up to $600 million and $750 million of assets through 2026. 
 
Recent financials reported Macy’s namesake sales fell 6% in the fourth quarter. Bloomingdale’s fell 1.5% and Bluemercury beauty and skincare products sales rose 2.3%. 
 
In 2020, Macy’s began a separate Polaris strategy that planned on stabilizing profitability with the plan to close 125 stores; however, only 85 stores were closed.
 
Macy’s currently operates 489 flagship stores, 32 Bloomingdale’s stores and 158 Bluemercury locations. This current strategy plans to prioritize investments in the remaining locations while Macy’s expands small-front and off-mall locations. 

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