Macy's 150 Closures Make Room for More Bloomingdale's and Bluemercury
Image Credit - Macy's
29 February, 2024

Macy's 150 Closures Make Room for More Bloomingdale's and Bluemercury

Macy’s has to go on a diet. The famous department store chain announced major changes – it will close 150 underperforming locations across the country over the next three years. As of early 2024, you can say goodbye to stores in Arlington, Virginia; San Leandro and Simi Valley in California; Lihue, Hawaii; and Tallahassee, Florida. A third of this 150 Macy’s spots will be closed in 2025, their locations are still unknown.

The company plans to shut its enormous 400,000-square-foot store in San Francisco’s Union Square, already seeking buyer for this prime location property. While it all sounds like a really big problem for the retailer, the 150 closures make up only about 10% of Macy’s total sales.

What Macy’s gonna do instead? It seems the company will focus on its better-doing brands. 15 new Bloomingdale’s for wealthy shoppers will open over three years, growing the upscale chain. Macy’s also plans at least 30 new stores for Bluemercury – the beauty retailer bought in 2015 that was Macy’s only brand with increased sales last quarter. Macy's will also improve the stores that stay open by adding more workers and making the stores look better.

This change shows Macy's is now strategically focusing more on luxury offerings as shopping habits transform and suburban mall traffic falls. The company hopes to mirror the positive results from its high-end brands to make future growth possible, even as its mid-priced stores are weakening.