Macy’s Inc. (NYSE:M) announced it will be closing 50 of its stores by the end of the year and another 100 over the next three years.
The department store chain announced the closings today during the analysts’ call for its fourth quarter 2023 earnings report. The company stated that it would enhance and upgrade its remaining 350 stores – which will include hiring more salespeople – and would also 15 new Bloomingdale’s stores and 30 new Blue Mercury cosmetics stores.
“We have to focus on making sure that we have the best stores, not the largest number of stores,” said CEO and Chairman-Elect Tony Spring. “So, yes, we want to have both strong on mall presence, some of the best stores in the country. We want to also pursue off-mall to make sure that we have availability and convenience and where a lot of put steps are going today. But we’re going to remain a majority mall-based freestanding store company with the right complement of off-mall stores to Macy’s and Bloomingdale’s more convenient.”
Macy’s did not provide a list of the stores that will be closing, although the company insisted these locations generate less than 10% of its sales.
The Associated Press reported the store closure announcement follows Macy’s rejection of a $5.8 billion takeover effort by the hedge fund Arkhouse Management and the investment firm Brigade Capital Management. Arkhouse and Brigade offered $21 per share for the stock they don’t already own, which Macy’s rejected. Last week, Arkhouse Management nominated a slate of nine director for election to Macy’s board of directors.
Macy’s reported a fourth quarter loss of $71 million, compared to a $508 million profit in the same period last year.