Macy's Inc. unveiled on Tuesday its plans to shut down 150 underperforming stores, which account for approximately 30% of its fleet over the next three years. This decision is part of Macy's new strategy "A Bold New Chapter," which aims to improve the remaining 350 Macy's locations and restore growth to the company.
According to Macy's full-year 2023 earnings report, the strategy includes "a roughly $950 million non-cash asset impairment charge, primarily related to the approximately 150 locations planned for closure over the next three years and the remaining associated with corporate assets."
Additionally, Macy's plans to open 15 new Bloomingdale's stores and 30 Bluemercury locations by 2026 and will upgrade its remaining 350 locations in order to accelerate the growth of its premium brand. "This strategy is designed to create a more modern Macy's, Inc. that is expected to generate meaningful value for our shareholders in the years ahead," CEO Tony Spring said.
