American retail giant Macy’s announced on Thursday (January 9) that it will be closing 66 stores this year as part of its previously announced business plan. This move is in line with Macy’s Chairman and CEO Tony Spring’s strategy to focus resources on thriving stores as part of their “Bold New Chapter” initiative.
Spring stated in a press release on Thursday, “Closing any store is never an easy decision, but as part of our ‘Bold New Chapter’ strategy, we will be closing underperforming Macy’s stores to concentrate resources and invest in our forward-looking stores where customers have responded positively to better products and higher levels of service.”
As per Macy’s “Bold New Chapter” strategy announced in February 2024, the company plans to close around 150 underperforming stores by the end of the 2026 fiscal year while upgrading 350 “forward-looking” stores by adding more sales staff. Last month, the company decided to increase the number of stores to be closed this year from the previously reported 55 to 66.
Reports indicate that the struggling retail chain is working on downsizing to combat the ongoing trend of declining sales. Reuters reported on Thursday that Macy’s stock has dropped more than 15% over the past 12 months. In December last year, the upscale retailer lowered its annual profit expectations due to weak demand for clothing and shoes.
Macy’s has invested in 50 “forward-looking” stores, with these investments boosting sales and improving customer satisfaction for three consecutive quarters. Investments in these stores include adding staff to women’s fitting rooms, checkout areas, female shoe and handbag sections, as well as enhancing visual merchandising. These stores have also introduced more popular brands while eliminating less sought-after ones to create a more streamlined shopping experience.
The list of the 66 stores set for closure can be found on Macy’s website.