New York – Macy’s Inc. reaffirmed its commitment to its “Bold New Chapter” turnaround plan as it rejected a recent buyout offer. Introduced last February, the strategy is already in motion with three main objectives: strengthening the Macy’s brand, accelerating luxury growth, and modernizing operations.
The company is set to provide an update alongside its Q2 results next month. Here’s a breakdown of the progress made so far:
Strengthening the Macy’s Nameplate
Central to this initiative is Macy’s plan to phase out 150 full-line stores over three years, with 50 closures scheduled for 2024. Additionally, Macy’s launched a pilot program earlier this year at select “First 50” stores. These stores act as innovation labs, focusing on enhanced merchandising, in-store events, and the introduction or expansion of key apparel brands.
In Q1, the First 50 locations outperformed the company with a 3.4% increase in comparable sales. In contrast, Macy’s stores not earmarked for closure saw a 1.3% decline in comps for the quarter ending May 4.
Simultaneously, Macy’s is expanding its small-format units. By the second half of 2025, the company plans to operate up to 30 new small-format Macy’s stores, building on the dozen units established by the end of 2023.
Accelerating Luxury Growth
Recognizing the success of its luxury segments, Macy’s aims to expand its Bloomingdale’s and Bluemercury businesses. Over the next three years, the company plans to open approximately 15 new Bloomingdale’s stores and 30 new Bluemercury locations. It also intends to remodel 30 existing Bluemercury units.
The expansion of Bloomingdale’s stores will focus on markets away from the coasts, complementing its current 32 full-line stores, 21 outlets, and three small-format locations.
Modernizing End-to-End Operations
Macy’s Inc. is undertaking a three-year plan to optimize its supply chain, enhance fulfillment capabilities, and improve inventory management. This effort includes implementing a scalable technology platform to support future omnichannel demands and streamline operations.
At the store level, technology is being leveraged at the First 50 Macy’s locations to enhance customer service and optimize staffing in critical areas such as the shoe department and fitting rooms.
Macy’s Inc. emphasized the early successes of its “Bold New Chapter” strategy, citing ongoing omnichannel initiatives and strategic investments aimed at enhancing customer experience.
“The company is seeing positive momentum across all strategic pillars, driven by continuous innovation and capital-efficient investments aimed at better serving our customers,” Macy’s announced yesterday.
