Macy's Department Store, a large chain department store in the United States, announced on the 27th that the company plans to close about 150 stores by the end of 2026 and shift its focus to luxury goods sales.
On the same day, Macy's stated in a statement that the new strategy will open a "bold new chapter" to enhance customer experience, increase market share, and return the company's revenue to growth.
Macy's announced that the company will close approximately 150 underperforming stores of the same name within the next three years, while upgrading the remaining 350 stores and continuing to open smaller chain stores. In addition, the company will focus more on luxury goods sales, including increasing the number of stores in its high-end department store Bloomingdales and high-end beauty store Bluemercury.
According to CNBC, Macy's department store has been underperforming for many years and is facing pressure to be acquired. After taking office in February this year, the new CEO of the company, Tony Spring, hopes to achieve profit growth by optimizing his asset and product portfolio.
According to reports, the company's net sales for the fiscal year 2023 were $23.09 billion, lower than the fiscal year 2022. The company expects its net sales for fiscal year 2024 to stagnate, between $22.2 billion and $22.9 billion.
In recent years, the operating scale of Macy's department store has been continuously shrinking. The company had 643 stores of the same name in 2019, but now there are only about 500. In January of this year, the company announced significant layoffs and closed five stores. The announced closure plan of 150 stores is seen as a major adjustment. Like many large chain retailers in the United States, the company is attempting to reverse its profit growth by deploying new strategies in response to constantly changing market demand and retail environment. (End)