NEW YORK, Feb. 27 (Xinhua Wang Fan) -- Macy's, a large U.S. department store chain, announced on Feb. 27 that it plans to close about 150 stores by the end of 2026 and shift its business focus to luxury sales.
On the same day, Macy's said in a statement, the new strategy will open a "bold new chapter" to enhance the customer experience, increase market share, so that the company's revenue back 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 the remaining 350 stores and continuing to open smaller chain stores. In addition, the company will focus more on its luxury sales business, including increasing the number of stores at its high-end department store Bloomingdale's and high-end beauty store Bluemercury.
Macy's has been underperforming for years and is under pressure to be acquired, according to the Consumer News & Business Channel (CNBC). The company's new chief executive officer Tony Spring (Tony Spring) took office in February this year, hoping to optimize its assets and product portfolio to achieve profitable growth.
The company's net sales for fiscal 2023 were $23.09 billion, lower than in fiscal 2022, the report said. The company expects its fiscal 2024 net sales to stagnate between $22.2 billion and $22.9 billion.
Macy's operations have been shrinking in recent years. The company had 643 stores of the same name in 2019, and only about 500 remain today. In January, the company announced significant layoffs, along with the closure of five stores. This announcement of 150 store closures is seen more as a major realignment. Like many large retail chains in the U.S., in response to changing market demands and retail environments, the company is attempting to reverse profitable growth by deploying new strategies.
