Macy’s is closing 150 stores

Written by on February 27, 2024

(CNN) — Macy’s is getting a new, smaller, but more luxurious look designed to turn around the troubled retailer and keep the century-and-a-half old brand relevant to rapidly changing demands from shoppers.

First, Macy’s will have to downsize. The company is closing 150 underperforming stores — 50 by the end of 2024 and the other 100 over the next few years. By 2026, it will have just 350 Macy’s stores, the company announced.

Second, the company will focus on its successful Bloomingdale’s and Bluemercury brands — luxury stores that have outperformed the Macy’s brand. It will open more, smaller versions of those stores over the next several years.

Macy’s turnaround strategy reflects a shift in retail and US shoppers.

As the middle class has shrunk in recent decades, the retail market has split: Lower-end stores focused on cost-savings, such as Walmart, have done particularly well. But so have luxury brands, as shoppers with means have been able to keep up their spending, despite higher prices.

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