Macy's will close 150 stores over the next three years as the department store company plans a “bold new chapter” to combat declining sales, it announced Tuesday.
The company’s new initiative involves shuttering approximately 50 of its "underproductive" locations by the end of its current fiscal year, though it did not say which stores those would be.
Plans include expanding its portfolio of small-format retail stores, which are about a fifth of the size of its standard department stores, and modernizing the 350 locations it will keep open nationwide.
The company also wants to expand its footprint in the luxury market, stating its high-end brands — Bloomingdale’s and Bluemercury — have been outperforming its other assets.
Over a dozen new Bloomingdale’s locations and about 30 Bluemercury stores will be opened in new and existing markets over the next three years, Macy’s said.
The department store giant has made several drastic changes over the last few years to cut costs as it continues to compete with online rivals.
In addition to what has become regular store closings nationwide, Macy's announced in January it was laying off 3.5% of its total workforce, roughly 2,350 employees.
Macy's laying off thousands of workers as company welcomes new CEO
The company will close five mall locations as it plans to open several small-format stores throughout the U.S.
"We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said CEO Tony Spring, who succeeded Jeff Gennette earlier this month.
According to the Associated Press, the company’s sales fell to $8.12 billion, down nearly 2% from a year ago, but were still better than the $8.09 billion that industry analysts had expected.
