Major big-box chain, Macy’s, announced that it was closing over 150 stores nationwide. Although this seems like another indicator of an economic downturn, don’t be so hasty. Not only is Macy’s not alone in this strategy, but it is also giving consumers what they want…
Macy’s Closing Stores After DISMAL 2023 Holiday Season
On February 27th, Macy’s said it was closing stores due to its lackluster 2023 Q4.
Historically, the Holiday season is the most lucrative time for large retail. Now, this is statistically a thing of the past…
MACY’S NAMESAKE STORES’ REVENUE HAS DROPPED BY 2.5% YEAR OVER YEAR.
On the other hand, the brand’s other stores, Bloomingdale’s and Bluemercury have actually increased their sales! Something that may surprise you because those retailers focus on luxury products.
NEVERTHELESS, BLOOMINGDALE’S GREW THEIR REVENUE BY 3.5% AND BLUEMERCURY SAW 7.8% GROWTH.
Via The Washington Post
For that reason, Macy’s is closing self-named stores to fine-tune their business model…
Shifting Focus to What is Working
The first step of Macy’s plan to optimize its performance is closing underperforming stores — like ones in abandoned malls. Then, the company is going to simultaneously improve the 350 profitable locations.
Macy’s CEO, Tony Spring, commented on this following the earnings report:
“We have some stores that are just underproductive or not as profitable, and we have to address that. Conversely, we have stores that are highly productive and highly profitable. We have markets and stores and centers we’re not in today that we’d like to be in.”
To this end, Macy’s also revealed its intentions to open 15 additional Bloomingdale’s locations over the next 3 years.
Based on these statistics, it appears that people are more interested in a curated shopping experience. Other struggling chains like Best Buy and Nordstrom have taken a similar approach with success.
Whatever the future of retail may be, it looks like we’re still buying in.
Be Great,
GCTV Staff
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