Lisa Lake, Getty images for Macy’s, Inc.
What you need to know
- Macy's released an initial list of 66 "underperforming stores" it plans to close as part of a multi-year turnaround campaign, including its Philadelphia City Center and Downtown Brooklyn locations.
- Retailer plans to spend more on remaining stores after announcing that 150 of its shops will be closed over the next three years.
- According to Macy's, the "Bold" plan is starting to pay off, with sales having improved for three consecutive quarters at stores that received fresh investment.
Macy’s released a number of “underperforming stores” It plans to shut down as part of an ongoing multi-year campaign. This includes its Philadelphia City Center location and Downtown Brooklyn.
The retailer's first batch of 66 planned closures will reduce its footprint in 22 states, with downsizing most significant in California, New York, Florida, and Texas, according to a list released Thursday. These shops will run clearance sales for up to 12 weeks before shuttering, according to Macy's website.
As part of its comeback plan, which it announced in February last year called “A Bold New Chapter.” This plan includes adding Bloomingdales, Bluemercury and small format stores.
Macy’s revealed the new strategy in response to a drop in sales, and an activist investor group’s proxy battle. Last month the retailer was faced with a new activist campaign after a previous one failed.
Macy's Says Plan Starting to Pay Off
According to Macy's, the "Bold" plan is starting to pay off, with sales having improved for three consecutive quarters at stores that received fresh investment.
“We are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go-forward stores, where customers are already responding positively to better product offerings and elevated service,” Tony Spring, CEO of Spring Enterprises.
Macy’s has reported that comparable sales owned by the company declined nearly 7% in fiscal year 2024. Visible Alpha’s analysts expect the company to announce its most recent full-year results in a month. They predict that comparable sales will fall by 0.2% this year and 1.6% the previous year.
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