(RepublicanView.org) – Macy’s will close 150 stores nationwide in the coming years and place more emphasis on the luxury and online markets. Executives issued a press release on February 27 saying the company is embarking on a “Bold New Chapter,” which will “deliver growth and unlock shareholder value.” Chief Executive Officer Tony Spring said the new strategy would “reinvigorate” the relationship between the retailer and its customers.
The strategy includes modernizing the shopping experience by focusing on ease and convenience and improving online shopping. The press release states that of the 150 stores that will close, 50 of these will shut their doors this fiscal year. The stores are described as “unproductive,” and executives say they will increase investment in the remaining 350 retail outlets.
The next strategic phase is expanding its luxury market. To facilitate this, Macy’s will open 15 Bloomingdale stores and launch or remodel 60 Bluemercury stores over the next three years. The company also plans to streamline and modernize its supply chain processes and improve inventory planning.
Financial projections aim for a 2%-3% dollar growth, lower capital spending next year than in 2024, and for cash flow to return to pre-pandemic levels.
The department store giant, which dates back to 1858 New York, has struggled to compete in an increasingly digitized world and posted a net loss of $71 million in the final quarter of 2023 – a significant drop from the $508 million profit the year before. Figures showed, however, that while sales fell by 1.7% to $8.2 billion, this was higher than expected.
Experts describe Macy’s “Bold New Chapter” as a do-or-die last chance for the department store, which, if unsuccessful, could put the merchant out of business. Fellow retailer JC Penney filed for bankruptcy in 2020, drowning under a mountain of debt. Likewise, the same year, Nieman Marcus entered Chapter 11 bankruptcy filings but resurfaced a year later, having cleared $4 billion debt and forming a new board of directors.
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