Macy’s Announces Closure of 150 Stores Amid Restructuring Plan
Macy’s, under new CEO Tony Spring’s leadership, is set to close approximately 150 underperforming stores over the next three years, about 30% of its total fleet, to ensure its relevance to shoppers.
Spring, who assumed the role on February 4, aims to optimize the remaining 350 Macy’s locations while expanding smaller store formats and increasing Bloomingdale’s and Bluemercury outlets.
The move comes as Macy’s faces pressure from activist investors and contends with changing consumer preferences, mirroring challenges seen by other department store chains.
The decision to downsize follows Macy’s recent corporate restructuring, which included staff reductions and the closure of five stores in January.
The 150 stores slated for closure represent a quarter of Macy’s gross square footage but less than 10% of its sales, with expected proceeds of $600 million to $750 million by 2026.
Spring plans to reinvest the proceeds into developing a more modern Macy’s, focusing on smaller, standalone locations outside of malls and enhancing customer experience through increased staffing and improved visual merchandising.
Additionally, Macy’s intends to expand its successful Bloomingdale’s and Bluemercury brands, with plans for new store openings and remodels over the next three years.
The restructuring strategy is informed by extensive consumer research involving 60,000 U.S. shoppers, emphasizing the need for a less cluttered shopping environment and enhanced customer service.
