AP Photo/Gene J. Puskar
- Macy's plans to close roughly 150 locations through the end of 2026, starting with 50 this year.
- The retailer says the moves will help it strengthen its brand and return to sales growth.
- Cost savings from the closures will be reinvested into about 350 remaining stores, the company said.
After years of sluggish sales performance, Macy's is planning drastic cuts to its store fleet in order to concentrate on better-performing locations.
About 150 underperforming stores are on the chopping block through the next three years, the company announced Tuesday in its fourth-quarter earnings release. The plan is to start with about 50 locations during this fiscal year. Macy's has yet to specify exactly which locations will be impacted.
The move follows cuts of 2,350 jobs and closures of five stores earlier this year, and the number is a stark increase from the single-digit closures Macy's has announced in recent years.
"We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments, and compelling value," CEO Tony Spring said in a statement.
The closures are one of three priorities the retailer says will help it "return to top-line growth," including a revitalization of their merchandising assortment and modernizing the shopping experience in-store and online.
Some cost-savings from the cuts will be reinvested into about 350 remaining department stores, as well as additional small-format stores.
In addition, the corporation is leaning harder into luxury, with planned expansions of its Bloomingdale's and Bluemercury brands in the next three years.
This story will be updated once a list of locations is available.