Macy’s to close 150 stores — 30% of its namesake chain — as new ceo takes helm

Macy’s said it will shut down 150 stores — about 30% of its US namesake chain — as the department store giant tightens its focus on luxury under a new chief executive. The retailer said in a

Tuesday filing that the closures slated to take place over the next three years will free up as much as $750 million worth of real estate assets as the department store chain focuses on

growing its luxury brands. During the same three years, Macy’s plans to add 15 new outposts of its higher-end Bloomingdale’s stores, as well as 30 Bluemercury locations, its luxury cosmetics

brand. The company also will upgrade existing Macy’s locations and open smaller versions of Macy’s stores. It’s the latest downsizing for Macy’s, a once-sprawling chain that operated 870

stores as recently as 2019, including 643 Macy’s locations. The move also comes less than one month into the tenure of Macy’s new chief executive, Tony Spring, who took the helm following a

four-decade career holding executive positions at Bloomingdale’s. “Inflation is still up even if it’s not as high as it was. We’re going to have to fight for our fair share and fundamentally

reposition the business for growth,” Spring said, according to Bloomberg. EXPLORE MORE It wasn’t immediately clear how many employees would be affected by the looming closures, though

Macy’s said in its filing that it would incur a $50 million charge related to termination costs. Many of the locations that are set to close are located near other Macy’s locations, meaning

some workers could transfer, according to Bloomberg. “The department store sector is half the size in terms of revenues than it was in 2010,” said Craig Johnson, president of Customer Growth

Partners, a retail consulting firm. “If you want to survive you have to shrink your fleet to keep up with the decline in the overall market.” Representatives for Macy’s — which has some 500

stores nationwide — did not immediately respond to The Post’s request for comment. Macy’s has been fighting off a pair of activist firms looking to buy the company for $5.8 billion — a deal

Macy’s rejected last month, reportedly over concerns on valuation. Arkhouse Management announced nine director candidates for Macy’s board last week — shortly after the retailer rejected a

go-private bid from Arkhouse and its partner Brigade Capital. “If it hadn’t been for the activists there wouldn’t be this urgency or the scale of these moves,” Johnson said. “Macy’s is also

doing what’s right for the shareholders. It needs to happen quickly. Yes, they are fending off the activists, but it’s also what needs to happen.” Arkhouse said last Tuesday it had provided

additional financing details, including names of highly regarded equity partners — which have more than $75 billion in combined assets under management — for the 50% equity component of the

transaction. Macy’s, which has entered its 166th year in business, has been struggling recently with weak demand as customers cut back on spending due to stubbornly high inflation and

elevated borrowing costs. Macy’s fourth-quarter results posted Tuesday showed sales fell nearly 2% in the all-important holiday quarter. KEEP UP WITH TODAY’S MOST IMPORTANT NEWS Stay up on

the very latest with Evening Update. THANKS FOR SIGNING UP! Revenue came in at $8.12 billion — slightly under the $8.15 billion Wall Street expected. Moving forward, the company said 2024

will be a year of “transition and investment,” and anticipated adjusted earnings of $2.45 to $2.85 a share — below the $3 analysts anticipated, and weaker than last year’s outlook. Per the

latest Consumer Price Index — which tracks changes in the costs of everyday goods and services — US inflation advanced a hotter-than-expected 3.1% in January, dampening hopes on Wall Street

that the first of three highly anticipated interest rate cuts this year could come as soon as March. The Bureau of Labor Statistics is set to release February’s CPI report on March 12. _With

Lisa Fickenscher_