FX168 Financial News Agency (Asia Pacific) News Macy's announced that it will close a total of 55 stores by the end of 2024, and will close 150 stores within three years. This is a move by the brand which is struggling to reshape its business. The company's sales have plummeted and store productivity has declined, and all indicators are moving in the wrong direction.
According to the UK's Daily Mail, Macy's originally planned to close 50 underperforming stores by the end of this year, which is part of the 150 stores it plans to close within three years. However, the company now plans to close 55 stores by 2025.
(Source: ZeroHedge)
As of last Friday (September 6), Macy's Inc stock price fell by 1.75%, closing at $14.61, with a decline of 28.73% in the past six months.
(Source: Trading View)
The specific locations of the closed stores have not been announced, but it is widely speculated that these stores will include Newton, New Hampshire, Traverse City, Michigan, and WestShore Plaza Shopping Center in Tampa, Florida. According to reports, these stores will be closed after the winter holiday season.
GlobalData Retail analyst Neil Saunders said of the store, 'Macy's biggest issues are the quality of its stores and its product assortment.'
'Therefore, over the years, customers have been leaving, sales have fallen sharply, and store productivity has declined. All indicators are moving in the wrong direction,' he continued.
Shortly after Macy's announced that it would invest in its own brand to turn the situation around, these stores were closed.
According to TheStreet, as part of the revitalization plan, the store has revived or introduced several other brands, including On 34th and State of Day.
The company plans to launch a menswear collection by the end of the year, followed by a new children's brand.
This shows that Macy's is still struggling on its path of transformation, trying to turn the company around.
ZeroHedge reported that Macy's major brand reshaping is not just about bringing back well-known brands to the market. It is said that the cornerstone of the mall will be more focused on its well-known, high-profit luxury goods to attract customers with slightly higher disposable income.
The company said it will focus on designer perfumes, which are cheaper than high-end handbags but still carry the characteristics of popular brands like Chanel and Dior.
Some of Macy's stores are already selling high-end perfumes from brands like Tom Ford, Creed, and Cartier. However, the company has announced that by the end of 2024, it will have 42 stores selling its high-end cosmetics, with a focus on perfumes, which is one of its goals to expand the supply of designer perfumes.
In addition, Macy's will soon launch the concept of shop-in-shop, following the footsteps of Target's Ulta Beauty strategy and Kohl's famous and successful Sephora initiative.