Macy’s, the largest department store chain in the U.S., is set to close 150 stores in the next two years.
This move comes as part of a “bold new chapter” that will involve the retailer moving to focus more on luxury products, which was announced on Tuesday in a press release. By the end of this year, Macy’s will have closed about 50 stores, with the rest of the 150 stores being closed by 2026.
Macy’s aims to upgrade its remaining 350 stores, open up to 30 small-format stores, and expand its higher-end stores, Bloomingdale’s and Bluemercury by 15 and 30 locations, respectively.
Macy’s says that the move is part of an effort to improve its digital presence. The company called the locations that it is closing “underproductive.” The move comes after a $71 million quarterly loss and a 5.4% drop in sales. Just last month, the company rejected a $5.8 billion offer from Arkhouse Management and Brigade Capital Management to buy the company.
“We are making the necessary moves to improve shopping experiences and provide compelling value,” said Macy’s CEO Tony Spring earlier this week, adding that the retailer has to compete for market share.
Following the announcement, Macy’s stock price dropped roughly 8%.
One store set to close is the San Francisco Macy’s location. The store is located in Union Square and takes up 400,000 square feet — nearly an entire city block. The company’s presence in San Francisco goes back to 1947, making it a part of the city’s culture.
As other Macy’s stores close, communities will be affected. In Florida, some mall owners are unsure about their future as Macy’s begins its closures.
In January, Macy’s announced that it was laying off roughly 2,350 employees. The company’s new announcement means that there may be even more workers affected in the near future.
