Through “A Bold New Chapter,” a new Macy’s strategy, the company intends to dramtaically reposition themselves and challenge the status quo. Yet, in order to do so, the company is closing approximately 150 locations.
Though no official list naming the 150 stores set to close has been released, Macy’s clarified that those selected have been deemed “underproductive locations.” Again, no confirmation has been made about which NYC stores will be affected, however, the San Francisco flagship Union Square store is among the announced closing locations.
All of the approximately 150 store closures will take place over a two-year span. It was originally estimated that around 50 locations would close by the end of 2024, and another 100 by 2026. Macy’s has since announced that the number of store closures before the year’s end has been increased to 55.
“We are pleased with the pace and the quality of deal making and now expect to close approximately 55 stores this year versus prior expectations of roughly 50,” confirmed Macy’s CEO, Tony Spring.
Overall, Macy’s is setting out to strengthen the company’s nameplate, accelerate luxury growth, and simplify and modernize end-to-end operations.
“A Bold New Chapter serves as a strong call to action. It challenges the status quo to create a more modern Macy’s, Inc. We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said Tony Spring, chief executive officer, Macy’s, Inc. “Our teams are energized by the work ahead as we accelerate our path to market share gains, sustainable, profitable growth and value creation for our shareholders.”
Macy’s will focus their investments in approximately 350 go-forward locations. Additionally, the company will continue to expand their small-format stores. Macy’s expects free cash flow to return to pre-pandemic levels and capital spend to be below 2024 levels in 2025 through these efforts.