US department store chain Macy's has announced an uptick in its closure strategy, revealing plans to cease operations at 65 locations within a year of the December 2024 announcement - an increase on the previously disclosed figures of between 50 and 55 stores.
The update was disclosed during the company's third-quarter earnings call.
Macy's CEO Tony Spring said: “We now expect to close roughly 65 locations this year. In line with our typical cadence, closures will occur post-holiday.”
The revision comes after Macy's initial announcement, which outlined a roadmap to closing 150 "unproductive" stores before the end of 2027.
The strategy, referred to as A Bold New Chapter, is designed to streamline operations and concentrate investments on 350 "go-forward" stores.
Spring added: “And the number remains approximately 150. We'll provide an update on that as we get into 2025. But the core is to get to a fleet that we think can provide sustainable profitable growth for the enterprise. We've continued to open Macy's small formats.”
“Although we still have work to do, we believe our Bold New Chapter initiatives, including the closure of roughly 65 non-go-forward locations this year, get us even closer to our go-forward end state of becoming a more profitable Macy's.”
Contrasting the downsizing of Macy's outlets, the company has expressed intentions to bolster its luxury brand presence by adding a total of 45 new Bloomingdale’s and Bluemercury locations.
In early 2024, Macy's - also the parent company of Bloomingdale's and Bluemercury - unveiled plans to inaugurate 15 new Bloomingdale's and at least 30 Bluemercury stores up to 2027, with 30 Bluemercury locations also set for renovations.
In its third quarter (Q3) result released in mid-December 2024, Macy’s reported a slight downturn with a 2.4% drop in net sales, posting revenues of $4.74bn compared to $4.86bn recorded during the same period of 2023.
At the end of the quarter, Macy's operated a network of 735 stores - an increase of 17 stores from the same period last year.
The company had postponed its Q3 earnings report following the discovery that an employee concealed up to $151m in expenses linked to small package deliveries.
The retailer identified this accounting discrepancy within one of its accrual accounts while preparing its quarterly financial statements.
In a separate development, affiliates of Barington Capital Group and Thor Equities — both stakeholders in Macy’s, submitted a detailed proposal advocating for the retail giant to overhaul its financial strategies and consider structural alterations with the aim of maximising shareholder value.
