Macy’s announced Tuesday it will be closing 150 stores, representing about 30% of the department store’s brick-and-mortar locations.
The “underproductive” stores will be shut down over the next three years, starting with 50 by the end of 2024 and the other 100 in the following years. By 2026, there will only be 350 Macy’s locations, down from a high of 640 stores in 2018.
The company did not announce which locations would be closed, though its flagship store in San Francisco’s Union Square is on the chopping block, said city Mayor London Breed.
The stores set to shutter account for less than 10% of its sales but about 25% of its square-footage, the company said.
The Macy’s locations that remain will be revamped with more salespeople added to fitting areas and shoe departments, along with additional visual displays.
Simultaneously, Macy’s said it would expand its smaller, luxury-focused brands. It plans to open 15 Bloomingdale’s and “at least 30 new Bluemercury stores, along with roughly 30 Bluemercury remodels…in new and existing markets over the next three years.”
There are currently 58 Bloomingdale’s and 158 Bluemercury beauty locations.
The news comes more than a month after the company said it was laying off more than 2,300 workers and closing five stores. At the same time, the company rejected an unsolicited $6 billion bid from hedge fund Arkhouse Management and investment firm Brigade Capital Management to take the company private and spin off its lucrative real estate assets.
Former Bloomingdale’s CEO Tony Spring was promoted to Macy’s CEO earlier this month after the retirement of Jeff Gennette.
“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” Spring said in a statement.
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