Macy’s closing 150 of its stores, expanding Bloomingdale’s 

Department store giant, Macy’s, has revealed a significant restructuring plan involving the closure of approximately 150 Macy’s stores across the United States in the coming years. The move is part of an effort to address challenges posed by shifts in consumer behavior, with the company caught between the trend of in-person buying gravitating towards both low-price “big box” stores and luxury/specialty shops, while facing increased online spending.

The company aims to close “underperforming” locations, with 50 stores shutting down by the end of the current year and an additional 100 over the next three years. Macy’s, which has faced challenges due to its middle-class appeal, plans to focus on enhancing its Bloomingdales and Bluemercury brands. The restructuring will involve opening about 15 new Bloomingdales stores and at least 30 Bluemercury locations over the next three years, while closing several Macy’s stores.

The company’s CEO, Tony Spring, described the strategy as “a bold new chapter” and “a call to action,” emphasizing the need to create a more modern Macy’s. He highlighted the commitment to improving customer relationships through enhanced shopping experiences, relevant assortments, and compelling value.

Macy’s intends to remain profitable amid these changes, as it battles against acquisition attempts. The company rejected a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management. Macy’s, established in 1858, is the largest operator of department stores in the U.S., and this marks its second significant round of closures in recent years.

The company had previously laid off about 3.5% of its workforce in January, affecting roughly 2,350 employees. Macy’s anticipates the restructuring plan will keep the company steadily profitable in the changing retail landscape.