Macy's announces it is closing 150 stores

Macy's reported that it will close 150 underperforming stores: 50 by the end of 2024 and the other 100 in the coming years. By 2026, it will prioritize its investment in just 350 stores.

The announcement was made in a statement posted on its official website. It also detailed that it plans to take advantage of its leadership position in the luxury market, where Bloomingdale's and Bluemercury have had better results within the Macy's, Inc. portfolio. further increasing its fleet of stores and its presence in digital services.

"A Bold New Chapter serves as a strong call to action. It challenges the status quo to create a more modern Macy’s, Inc. We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said Tony Spring, CEO of Macy’s, Inc., in the statement.

"Deliver a scalable technology platform"

The information was released on the same day that Macy's announced that in the fourth quarter of 2023, it had net sales of $8.1 billion, 1.7% less than the fourth quarter of 2022.

"Digital sales decreased 4% versus the fourth quarter of 2022. Brick-and-mortar sales were roughly flat versus the fourth quarter of 2022," the company said.

Similarly, a month ago the company announced it was laying off 2,350 employees, 3.5% of its workforce. At the time, Macy's claimed that the decision was made due to its adaptation to the digital age and online shopping.

The company stated that its new strategy is based on the fact that, "Over the next three years, the organization plans to rationalize and monetize the supply chain asset portfolio, streamline fulfillment, improve inventory planning and allocation, and deliver a scalable technology platform. Across the organization, Macy’s, Inc. plans to align operations to anticipated future omni-demand and deliver a more efficient operating model that will allow the organization to better serve customers."