In an effort to reshape its strategy and achieve “sustainable, profitable growth,” Macy’s announced Tuesday that it’s closing 150 Macy’s stores, but expanding its Bloomingdale’s and Bluemercury chains. This is the second time since 2020 that Macy’s has shuttered a rash of stores, and leaves the chain with approximately 350 stores remaining.
The “underproductive locations” that will close their doors make up just 10% of the company’s sales, but take up 25% of the organization’s total square footage. The expected earnings from the closures, as well as from improving warehouse efficiency, hover around $600 million to $750 million, with the hopes that it will prevent a takeover bid.
“We have to focus on having the best stores, not the largest number of stores,” said CEO Tony Spring.
Despite the closures, the company plans to add 15 Bloomingdale’s stores, as well as 30 new locations of its beauty chain, Bluemercury. This brings Bloomingdale’s up to 58 total stores and Bluemercury to 158 locations.
