**: China News Network.
China News Service, New York, February 27 (Reporter Wang Fan) Macy's, a large department store chain in the United States, announced on the 27th that the company plans to close about 150 stores by the end of 2026 and shift its business focus to luxury sales.
On the same day, Macy's said in a statement that the new strategy would open a "bold new chapter" to enhance the customer experience, increase market share and get the company's revenue back on track.
Macy's said it will close about 150 underperforming same-name stores over the next three years, while upgrading the remaining 350 stores and continuing to open smaller chains. In addition, the company will focus more on luxury sales, including increasing the number of stores in its high-end department store Bloomingdale's and high-end beauty store Bluemercury.
According to CNBC, Macy's has been underperforming for many years and is under pressure to be acquired. The company's new chief executive, Tony Spring, took office in February and is looking to grow profitably by optimizing its assets and product portfolio.
According to the report, the company's net sales for fiscal 2023 were 230$900 million, down from fiscal 2022. The company expects its net sales to stagnate in fiscal 2024 to be between $22.2 billion and $22.9 billion.
In recent years, Macy's has been shrinking. The company had 643 eponymous stores in 2019 and today only about 500 remain. In January, the company announced significant layoffs and the closure of five stores. The announcement of the closure of 150 stores is seen as a major adjustment. Like many large U.S. retailer chains, the company is trying to turn around its earnings growth by deploying new strategies in response to changing market demands and retail environments.