The retailer said it will close 50 locations by the end of 2024 with another 100 closing in the future. CNN reported that by 2026, when the reorganization is expected to be complete, Macy’s plans to have 350 locations.
In a news release, Macy’s called the move “a bold new chapter.”
The closures account for about 30% of Macy’s stores, The Wall Street Journal reported. At one point, Macy’s had about 870 stores, with 643 under the parent company’s brand.
The stores that will be closing account for only 10% of sales, The New York Times reported.
In addition to shuttering Macy’s locations, the company will promote Bloomingdale’s and Bluemercury stores that have performed better than the Macy’s flagship brand. It plans on adding additional Bloomingdale’s and Bluemercury locations.
The change is due as shoppers are looking for lower costs found at retailers such as Walmart for most items, but are still looking for personal luxury items from high-end stores.
While the plans primarily focus on closing underperforming stores, Macy’s will be reimagining some locations, opening 30 smaller stores that are not in malls and trying to bank on shoppers’ desire to visit stores that are not part of traditional malls. The smaller stores have proven to be more profitable as they don’t carry as much merchandise, and don’t have as many employees as large, mall-based stores, CNN reported.
“This isn’t just about shrinking,” Macy’s CEO Tony Spring said, according to The Wall Street Journal. “This is about resizing the portfolio to make sure we are giving people an opportunity to shop the way they want.”
The company released a statement to WFXT, which said:
“Macy’s, Inc.’s new strategy, A Bold New Chapter, is designed to challenge the status quo to fundamentally reposition the company and enhance the customer experience, deliver growth and unlock shareholder value. Over the next three years, our teams will focus on three strategic priorities: strengthen the Macy’s nameplate to return to topline growth, accelerate luxury growth through Bloomingdale’s and Bluemercury and simplify and modernize our end-to-end operations. Macy’s is dedicating resources to optimize our store footprint; refresh our product assortment to ensure relevance and value; and modernize the shopping environment to offer a seamless experience across all channels with continued focus on digital excellence.
“As part of our strategy, we intend to close approximately 150 locations over the next three years so we can prioritize investments in the stores that will lead us to a healthier future. Closing a store is never an easy decision. We are committed to supporting our impacted colleagues with opportunities wherever available across Macy’s, Inc. and to communicating with transparency. Customers can find nearby stores at Macys.com/stores and continue to shop at macys.com and on Macy’s mobile app.”
Macy’s had already laid off 13% of its corporate staff in January and announced the closing of five stores, the newspaper reported. In all the company cut about 2,350 employees at the time, according to The Associated Press.
Employees at affected stores will start finding out on Tuesday, The New York Times reported.
The last time Macy’s closed a large amount of stores was in February 2020, when the company said it was closing 125 stores and laying off 2,000 workers, the Times reported.
A list of stores that are closing in this round was not available as of Tuesday morning.
Macy's 1880 The first Macy's store, on Sixth Avenue 'Ladies Mile' in New York City, circa 1880. (Photo by Archive Photos/Getty Images) (Archive Photos/Getty Images)
Macy's 1888 Advertisement for wares from the Cloak Department at RH Macy & Company, now better known as Macy's Department Store, New York, New York, 1888. The advertisement markets the latest fashion from Paris and Berlin, misses' and children's cloaks, Alaska seal jackets, sacques, millinery, and black silk. (Photo by Interim Archives/Getty Images) (Interim Archives/Getty Images)
Macy's 1890 RH Macy & Co Importers, Manufacturers & Retailers, catalog front cover, 1890. (Photo by The New York Historical Society/Getty Images) (The New York Historical Society/Getty Images)
Macy's 1890s New York City: "The Famous Macy's---Loading delivery wagons, Sixth Avenue side. Undated. (Bettmann/Bettmann Archive)
Macy's 1895 Building at the corner of Broadway and 34th Street, surrounded by Macy's, New York, New York, 1895. (Photo by Geo. P. Hall & Son/The New York Historical Society/Getty Images) (The New York Historical Society/Getty Images)
Macy's 1895 High-angle view of Macy's, Herald Square, Broadway and 34th Street, New York, New York, 1895. (Photo by Geo. P. Hall & Son/The New York Historical Society/Getty Images) (The New York Historical Society/Getty Images)
Macy's 1905 R.H. Macy and Co., New York City, USA, circa 1905. (Photo by: Universal History Archive/Universal Images Group via Getty Images) (Universal History Archive/Universal Images Group via Getty)
Macy's 1910 Exterior view of Macy's department store, New York City. Photograph circa 1910. (Bettmann/Bettmann Archive)
Macy's 1918: Exterior view of Macy's department store on 34th Street and Sixth Avenue, New York City. There are trolley cars and pedestrians in the intersection and elevated train tracks in the foreground. (Photo by Edwin Levick/Hulton Archive/Getty Images) (Edwin Levick/Getty Images)
Macy's 1932 Overlooking a crowd of Christmas shoppers near the information booth at Macy's. (Bettmann/Bettmann Archive)
Macy's 1940s Photo shows exterior view of Macy's department store in New York. ca. 1940s. (Bettmann/Bettmann Archive)
Macy's 1946 Demonstrators join the picket line protesting outside Macy's department store, after the store sold out its own delivery service to the United Parcel Service (UPS) New York City, New York, 13th July 1946. The picket was in protest at UPS employees belonging to the AFL union while Macy's employees are CIO members. (Photo by Keystone Pictures/FPG/Archive Photos/Hulton Archive/Getty Images) (FPG/Getty Images)
Macy's 1958 Wheelock Bingham, President of R. H. Macy, Co, Inc., Jack I. Straus, Chairman of the Board and Hulan Jack, Manhattan Boro President, changing a street sign from Herald Square to Macy Square, during the 100th anniversary of Macy's. (Photo by Fred Morgan/NY Daily News Archive via Getty Images) (New York Daily News Archive/NY Daily News via Getty Images)
Macy's Christmas shoppers outside of Macy's department store (Photo by Fairchild Archive/Penske Media via Getty Images) (Fairchild Archive/Penske Media via Getty Images)
Macy's People shopping at Macy's department store in the Christmas season (Photo by Fairchild Archive/Penske Media via Getty Images) (Fairchild Archive/Penske Media via Getty Images)
Macy's 1966 Elmhurst, N.Y.: The home of real estate holdout Mary Sendek in Elmhurst, Queens, New York is pictured on January 11, 1966. Sendek refused to sell the house at 87-01 Queens Boulevard to Macy's Department store despite an offer of $200,000 for the building. Macy's was forced to design the new store around the home. (Photo by Rex Lyons/Newsday RM via Getty Images) (Newsday LLC/Newsday RM via Getty Images)
Macy's 1969 A branch of Macy's, one of the anchor stores at the newly-opened Smith Haven Mall in Lake Grove, Long Island, New York, May 1969. (Photo by Ian Tyas/Keystone Features/Hulton Archive/Getty Images) (Ian Tyas/Getty Images)
Macy's 1972 Woman carrying a Bloomingdale's bag, shopping at Macy's department store in the Christmas season (Photo by Nick Machalaba/WWD/Penske Media via Getty Images) (WWD/Penske Media via Getty Images)
Macy's Little girls hold Raggedy Ann dolls in the children's section at Macy's department store in the Christmas season (Photo by Fairchild Archive/Penske Media via Getty Images) (Fairchild Archive/Penske Media via Getty Images)
Macy's 1974 Macy's, July 1974, New-York (Photo by Jean-Erick PASQUIER/Gamma-Rapho via Getty Images) (Jean-Erick PASQUIER/Gamma-Rapho via Getty Images)
Macy's 1977 Traffic passes billboards reading 'If you haven't seen Macy's, you haven't seen New York' and 'This is Macy's, the world's largest store' on the facade of Macy's department store on Broadway and West 34th Street, in the borough of Manhattan, New York City, New York, November 1977. (Photo by Peter Keegan/Keystone/Hulton Archive/Getty Images) (Peter Keegan/Getty Images)
Macy's 1989 Estee Lauder stopped by the Macy's in Herald Square unannounced to see a place setting she designed for a store promotion on September 13, 1989 in New York. (Photo by Fairchild Archive/Penske Media via Getty Images) (Fairchild Archive/Penske Media via Getty Images)
Macy's 2000 A woman exits Macy''s department store on Sixth Avenue December 14, 2000 in New York. (Photo by Chris Hondros/Newsmakers) (Chris Hondros/Getty Images)
Macy's 2002 NEW YORK - NOVEMBER 22: A child looks at a Christmas scene depicted in a Macy's at Herald Square department store window during the unveiling of the retailer's holiday windows November 22, 2002 in New York City. (Photo by Matthew Peyton/Getty Images) (Matthew Peyton/Getty Images)
Macy's 2003 NEW YORK - OCTOBER 17: Macy's department store is seen October 17, 2003 in New York City. (Photo by Chris Hondros/Getty Images) (Chris Hondros/Getty Images)
Macy's 2003 Customers walk out of Macy's the day after the company announced that the 56 Burdines stores and the seven Macy's stores in Florida all will operate under the combined name of Burdines-Macy's May 23, 2003 in North Miami, Florida. (Photo by Joe Raedle/Getty Images) (Joe Raedle/Getty Images)
Macy's 2007 Priscilla, the Pink Pig, was a staple at Macy's in Atlanta.
Macy's 2009 The jolly old man will make his first appearance in Macy's court on Nov. 3 in Atlanta. While you're there, the kiddos may want to swing by to see “Priscilla,” Macy's Pink Pig train ride Of course there will also be a giant Christmas tree.
Macy's 2009 Customers leave a Macy's store along the Magnificent Mile on February 2, 2009 in Chicago, Illinois. (Photo by Scott Olson/Getty Images) (Scott Olson/Getty Images)
Macy's 2017 Macy's department store on a sunny day, with a cloudy blue sky, at the Stanford Shopping Center, an upscale outdoor shopping mall in the Silicon Valley town of Stanford, California, April 7, 2017. (Photo via Smith Collection/Gado/Getty Images). (Smith Collection/Gado/Getty Images)
Macy's 2021 Priscilla, the Pink Pig, was a staple at Macy's in Atlanta.
Macy's 2021 Priscilla, the Pink Pig, was a staple at Macy's in Atlanta.
Macy's 2021 Priscilla, the Pink Pig, was a staple at Macy's in Atlanta.
Macy's 2022 MIAMI, FLORIDA - NOVEMBER 30: The exterior of a Macy's store photographed on November 30, 2022 in Miami, Florida. (Photo by Jeremy Moeller/Getty Images) (Jeremy Moeller/Getty Images)
Macy's 2023 The Macy's company signage is seen at the Herald Square store on March 02, 2023 in New York City. (Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago/Getty Images)
Macy's 2024 NEW YORK, NEW YORK - JANUARY 19: People walk past the Macy's store on Herald Square on January 19, 2024 in New York City. (Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago/Getty Images)
Macy's 2024 NEW YORK, NEW YORK - JANUARY 19: The Macy's store on Herald Square is seen on January 19, 2024 in New York City.
(Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago/Getty Images)
Macy's 2024 NEW YORK, NEW YORK - JANUARY 19: People shop at the Macy's store on Herald Square on January 19, 2024 in New York City. (Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago/Getty Images)