Macy's is closing 150 stores over three years, focusing more on luxury with Bloomingdale's and Bluemercury. The company will drop to 350 stores but plans to open 45 new luxury locations.
The shift marks a "bold new chapter" under new CEO Tony Spring. Macy's aims to modernize and improve customer relationships through better experiences and value.
Spring emphasizes the move to reinvigorate Macy's and gain market share. The closures target underperforming stores, which represent a small fraction of sales but a quarter of the company's space.
This year, 50 Macy's stores will close, with the rest by 2026. This follows a recent announcement of five closures and 2,350 job cuts.
The layoffs are part of a plan to automate and streamline Macy's supply chain. Macy's is also expanding its small-format stores, opening 30 across the U.S. to adapt to retail changes.
These smaller stores, significantly less spacious than traditional locations, aim to make Macy's more competitive. Macy's adjusts its strategy as department stores struggle, highlighted by the pandemic's impact on retail giants like J.C. Penney and Neiman Marcus.