The owner of the famous Macy’s stores plans to close 150 outlets by 2026 in order to focus on the high-end segment of the market. The move is aimed at streamlining its operations and modernizing its shopping experience to remain competitive.
American department store giant Macy’s announced on Tuesday February 27 that it would be closing 150 of its outlets by 2026, in order to refocus on the high-end segment of the market. In difficulty for some time and under pressure from investors, the group was forced to react.
This restructuring will result in the disappearance of 30% of the group’s Macy’s stores, some 150 stores in all. In particular, the decision aims to close “50 under-productive locations by the end of the fiscal year”.
Macy’s justifies this action by pointing to the need to concentrate its resources on the 350 outlets that will remain in business. This also involves the expansion of smaller stores and modernization efforts in selected outlets.
“The plan to reinvigorate the Macy’s banner is long overdue, and the recognition that something needs to change must be welcomed,” commented Neil Saunders, analyst for GlobalData. “The company will “modernize” the shopping experience, which we hope means that stores will benefit from a complete refurbishment and an adequate number of employees (…) This is the critical area where Macy’s has consistently failed.”
Difficulties for some time
This decision comes as no surprise. Back in January, Macy’s announced plans to reduce its workforce by 3.5% “to become a more streamlined company”.
According to its annual report, at that time the group had around 94,500 employees and a total of 722 stores by the end of 2022.
In mid-November, Macy’s announced plans to close stores in early 2024, citing an “uncertain macroeconomic climate”. At the time, however, it was talking about “fewer than ten stores” and had specified that this would affect all banners.
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