Macy’s new store strategy: Less for more
Macy’s new store strategy is somewhat controversial as it will have 150 fewer locations nationwide to become more upscale.
Macy’s is working on a new smaller but more upscale version designed to turn around the struggling retailer.
The new Macy’s store strategy seeks to keep its century-old brand in step with shoppers’ rapidly changing demands.
First, Macy’s will have to downsize and as such, is closing 150 underperforming stores.
The closure schedule will start with 50 by the end of 2024 and the other 100 over the next few years.
By 2026, it will have only 350 Macy’s stores, the company announced.
Macy’s new store strategy is somewhat reckless, and is a reversal of its expansionary policy.
Second, the company will focus on its successful Bloomingdale’s and Bluemercury brands, upscale stores that have outperformed the Macy’s brand.
In the coming years it will open more such stores, in smaller versions, concentrating more quality for quantity.
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Macy’s new store strategy
Macy’s new store strategy is somewhat controversial as it will have 150 fewer locations nationwide to become more upscale.
Macy’s is working on a new smaller but more upscale version designed to turn around the struggling retailer.
The new Macy’s store strategy seeks to keep its century-old brand in step with shoppers’ rapidly changing demands.
First, Macy’s will have to downsize and as such, is closing 150 underperforming stores.
The closure schedule will start with 50 by the end of 2024 and the other 100 over the next few years.
By 2026, it will have only 350 Macy’s stores, the company announced.
Macy’s new store strategy is somewhat reckless, and is a reversal of its expansionary policy.
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Second, the company will focus on its successful Bloomingdale’s and Bluemercury brands, upscale stores that have outperformed the Macy’s brand.
In the coming years it will open more such stores, in smaller versions, concentrating more quality for quantity.
Department stores have been pressured by the rise of Amazon, the growing strength of discount chains such as TJ Maxx and online brands.
Macy’s stock price has fallen 75% from a high of $73 per share in 2015.
Since then, it has closed nearly 300 stores, almost a third of its locations, but continues to operate about 700 across its brands.
Last month, Macy’s announced it was laying off about 3.5% of its workforce, about 2,350 employees.
The company’s difficulties have attracted the attention of activist investors. Last month, Macy’s rejected an unsolicited $6 billion offer from an activist investor seeking to take the famous department store private.
The activist group is now back on the attack at Macy’s, initiating a proxy fight to take control of the board of directors.
New CEO Tony Spring said in a statement that the “bold new chapter,” which has the full support of the company’s board of directors, was developed after extensive market research and will revitalize the Macy’s brand.
