Macy’s announced Tuesday it will be closing 150 “underproductive locations” over the next three years as sales dip and the company looks to expand its higher-end luxury brands.
The department store chain saw nearly a 2 percent drop in sales during the fourth quarter of last year when compared to its fourth quarter of 2022. In 2023 as a whole, its net sales dropped 5.5 percent and its digital sales dropped 7 percent.
Macy’s new CEO, Tony Spring, who stepped into the role this month, expressed optimism in a statement accompanying the sales report, which was released Tuesday alongside the announcement of the impending closures.
“Throughout the fourth quarter, we delivered an improved omnichannel experience, with effective merchandising and a clear demonstration of value that resulted in a strong close to the year,” Spring said in a statement.
As part of its new strategy, Macy’s will be closing 50 locations by the end of the fiscal year. This leaves approximately 350 Macy’s stores left, which the company said it will continue to invest in and expand.
Despite its dip in sales, Macy’s Inc. announced it would be shifting focus to its higher-end brands of Bloomingdale’s and Bluemercury, saying part of its strategy will be opening 15 more Bloomingdale’s nameplate stores and at least 30 new Bluemercury stores over the next three years.
Macy’s said Bloomingdale’s nameplate “saw strength in beauty, women’s contemporary sportswear and the Bloomingdale’s the Outlets business,” while Bluemercury “continued to see strength in skincare and color cosmetic categories.”
“Macy’s, Inc. plans to take advantage of its leadership position in the luxury market, where Bloomingdale’s and Bluemercury have been outperformers within the Macy’s, Inc. portfolio and across the broader luxury landscape, by further growing its store fleet and digital presence,” the announcement stated.
Department stores have been struggling to compete with the online market since before the pandemic, with a handful of retailers filing for bankruptcy protection in recent years. Earlier this year, Macy’s rejected a $5.8 billion takeover offer from investment firms Arkhouse Management and Brigade Capital Management, The Associated Press reported.
The Associated Press contributed.