US retailer Macy's to close 150 stores
Source: AFP
The iconic but struggling US department store Macy's announced plans on Tuesday to close around 150 locations by 2026, while concentrating investments in its more upscale Bloomingdale's and Bluemercury brands.
The company, which had announced in January it would pare its workforce by 3.5 percent, said in a statement the new strategy aims to open a "Bold New Chapter" to return 166-year-old Macy's to enterprise growth.
Approximately 50 of the 150 "underperforming locations" will be closed by the end of the fiscal year, the company said, without mentioning how many employees would be impacted.
It said Macy's would be "prioritizing investment in approximately 350 go-forward locations and the continued expansion of small-format stores."
Luxury brands Bloomingdale's and Bluemercury have been "outperformers within the Macy's, Inc. portfolio," the statement said.
"As part of the strategy, approximately 15 Bloomingdale's nameplate stores and at least 30 new Bluemercury stores, along with roughly 30 Bluemercury remodels are anticipated to be opened in new and existing markets over the next three years," it added.
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The company on Tuesday also published its year-end results for 2023, announcing it had declining revenues and profits.
Revenues came in at $23.1 billion, down 5.5 percent from the previous year, while net profits remained in the black at $105 million, but falling sharply by 91 percent.
In pre-market trading, Macy's shares were down 0.9 percent at $19.13.
Source: AFP
