Macy's to shutter 10 store closures in January as part of 125 store reduction strategy
Macy’s arguable the flagship of America’s department stores, is fast-tracking its shift to digital. Last week the company announced a new marketplace and focus on its e-commerce strategy. This also means re-evaluating its brick and mortar portfolio, with 10 stores expected to close in January.
The closures are line with a strategy to shutter a 125 stores in lower-tier malls by 2023, as outlined in the company’s 3 year strategy in 2020. This also includes upgrading existing physical stores, investments in merchandising strategies, technology improvements, talent and local marketing.
“An omnichannel view has also highlighted the need for us to take a second look at the timing of when we close the approximately 60 remaining stores we previously planned to close as part of Polaris, those markets that are performing best in aggregate, including many of the stores previously slated for closure,” Macy’s EVP and CFO Adrian Mitchell told Footwear News. “With this in mind, we are considering the following points as we approach the optimization of our store portfolio.”
Macy’s CEO and chairman Jeffrey Gennette said in a call with investor’s Macy’s digital business is on track to generate 10 billion dollars in sales by 2023, excluding revenue expected from a new marketplace platform that the company plans to launch in the second half of 2022. This platform will allow third-party merchants to sell their products via Macys.com and Bloomingdales.com, offering an expanded assortment of products across multiple categories.