China News Service, New York, February 27 (Reporter Wang Fan) Macy's, a large American department store chain, announced on the 27th that it plans to close about 150 stores by the end of 2026 and shift its business focus to luxury goods sales.
On the same day, Macy's said in a statement that this new strategy will open a "bold new chapter" to enhance customer experience, increase market share, and return the company's revenue to the growth track.
Macy's said it will close about 150 underperforming stores of the same name over the next three years while upgrading its remaining 350 stores and continuing to open smaller chain stores.
In addition, the company will focus more on luxury sales, including increasing the number of stores in its high-end department store Bloomingdale's and high-end beauty store Bluemercury.
According to the US Consumer News and Business Channel (CNBC), Macy’s has been underperforming for many years and is facing pressure to be acquired.
After the company's new CEO Tony Spring took office in February this year, he hopes to achieve profitable growth by optimizing its assets and product portfolio.
According to the report, the company's net sales in fiscal year 2023 were US$23.09 billion, which was lower than in fiscal year 2022.
The company expects its net sales to be stagnant in fiscal 2024, ranging from $22.2 billion to $22.9 billion.
In recent years, Macy’s has continued to shrink its business scale.
The company had 643 stores of the same name in 2019, but only about 500 remain today.
In January this year, the company announced significant layoffs and the closure of five stores.
The 150 store closure plan announced this time is regarded as a major adjustment.
Like many large chain retailers in the United States, the company is trying to turn around profitable growth by deploying new strategies in response to changing market demands and retail environments.
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