LONG ISLAND, NY — Macy's plans to close 150 underperforming stores amid sliding sales, the department store chain said Tuesday. It's unclear if the Long Island stores are among those to close.
The announcement came after the company reported fourth-quarter losses and falling sales. At the same time, the company signaled a shift toward its luxury brands, saying it would open 15 higher-end Bloomingdale's stores and 30 of its Blue Mercury luxury cosmetics locations.
Macy's has 38 stores in New York and 13 on Long Island, with one location in Huntington Station, one in Garden City, two in Lake Grove, two in Carle Place, one in New Hyde Park, one in Bay Shore, one in Hampton Bays , one in Huntington, one in Manhasset, one in Massapequa and one in Valley Stream.
The flagship department store chain plans to close 50 of the targeted stores by the end of 2024 and another 100 in the following years. By 2026, Macy's will have 350 stores, the company said.
Macy's faces a proxy fight from Arkhouse Management, which named a slate of nine directors up for election to the Macy's board last week. Last month, Macy's rejected a $5.8 billion takeover bid from hedge fund and investment manager Brigade Capital Management.
Activist investors and pressure to increase sales are just two critical issues facing new CEO Tony Spring, who succeeded Jeff Gennette earlier this month.
“We are making the necessary moves to revitalize our customer relationships through enhanced shopping experiences, relevant assortments and compelling value,” Spring said in a statement.
Even before the pandemic, department stores faced stiff competition from online competitors. Neiman Marcus and JCPenney both filed for Chapter 11 bankruptcy protection.
Consumers have proven resilient and willing to shop even after a period of inflation, although attitudes have changed, with some Americans trading up for lower-priced products.
Macy's is maneuvering to boost sales by accelerating the expansion of smaller stores that can offer more convenience to its customers. In October it announced plans to add up to 30 small-format locations by fall 2025, bringing the total to about 42. The next round of expansion begins in the fall.
Even with the shift in focus, Macy's is cutting jobs. The department store said in January it would cut about 2,350 employees, or about 3.5 percent of its workforce, and close five stores.
The Associated Press contributed to this post.
