Macy’s Closes 150 Stores Amid Luxury Brand Expansion

Macy’s plans to close 150 underperforming stores in three years, focusing on expanding luxury brands like Bloomingdale’s and Bluemercury, according to a CBS News article. They say, 

“Macy’s on Tuesday said it plans to close roughly 150 underperforming stores over the next three years, the struggling retailer’s latest effort to energize its business as it seeks to fend off a proposed takeover by activist investors.

The department store chain said it plans to focus on expanding its luxury brands, Bloomingdale’s and Bluemercury. Macy’s will shutter 50 stores over the next year. Overall, the restructuring plan will leave Macy’s with 350 outlets. In an email to CBS MoneyWatch, Macy’s said it isn’t disclosing the locations that will be closed.”

Macy’s expects a $50 million charge for employee termination due to the closures. While many stores are near existing Macy’s, some workers might transfer, according to a Dallas Morning News article. In it they say, 

“The company didn’t give an estimate of the number of employees that will be affected by the closures, though it said in a filing that it would take a $50 million charge related to employee termination costs. Many of the 150 stores are near other Macy’s locations, which could allow some workers to transfer. About 50 stores will close this year. Macy’s also plans to add 15 new Bloomingdale’s and 30 Bluemercury locations by 2026 — an effort to accelerate the growth of its higher-end brands.”

Macy’s plans to close 150 stores over three years, aiming for up to $350 million in asset sale gains. Their shares rose 5.7% to $20.40.