What: Macy's Inc. has announced a comprehensive action plan, "A Bold New Chapter," in response to weak Q4 results, including closing 150 stores, opening new locations, and enhancing its luxury and small-format offerings.

Why it is important: This strategic pivot aims to rejuvenate Macy's by focusing on profitable stores, expanding in key areas, and optimising operations. It's a significant move to regain customer interest, achieve sustainable growth, and fend off acquisition attempts.

Macy's Inc., under the leadership of CEO Tony Spring, is embarking on a transformative journey to revitalize its brand and financial performance. The plan, unveiled following disappointing Q4 earnings, includes closing around 150 underperforming stores by 2026, with 50 closures expected by the end of this fiscal year. The focus will shift to approximately 350 "go-forward" stores, alongside the expansion of small-format chains like Bloomies and Bluemercury. Macy's also plans to open 15 new Bloomingdale’s stores, at least 30 Bluemercury stores, and remodel about 30 Bluemercury locations within three years. Additionally, the company aims to monetise $600 million to $750 million of assets by 2026, streamline its supply chain, and invest in technology to support scalable growth. Despite a net loss of $71 million in Q4 and a year-end net income of $105 million, Macy's strategy is to reengage customers, enhance shopping experiences, and position itself for market share gains and profitable expansion. This strategic overhaul is a direct response to the challenges faced and the recent $5.8 billion buyout bid by Arkhouse and Brigade Capital Management, which Macy's has rejected.

Macy’s Inc. posts weak Q4 results, unleashes action plan

Macy’s, Inc. Reports Fourth Quarter and Full-Year 2023 Results