You can be on Entrepreneur’s cover!

Macy's Is Shuttering 150 Stores, Investing in Luxury Retailers Bloomingdales and Blue Mercury Instead The retailer is making massive changes in the wake of changing consumer behavior.

By Emily Rella

entrepreneur daily

Beloved department store chain, Macy's, announced that it would be shuttering 150 store locations and focus on its luxury subsidiaries, Bloomingdale's and Blue Mercury.

In a conference call on Tuesday, CEO Tony Springs revealed that Macy's would be shutting down underperforming stores with a plan to nix 50 by the end of 2024 and another 100 by the end of 2026.

The plan is to then build out 30 smaller stores by 2026 that are not attached to shopping malls, as well as opening 15 new Bloomingdale's locations and 30 new Blue Mercury storefronts.

Macy's also plans to remodel roughly 30 existing Blue Mercury stores as it plans to take "advantage of its leadership position in the luxury market." Macy's acquired the luxury makeup retailer in 2015 for an estimated $210 million.

Related: Amazon, Macy's Among Retailers Ending 'Free Returns' Policy

"We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments, and compelling value," Spring said in a company statement. "Our teams are energized by the work ahead as we accelerate our path to market share gains, sustainable profitable growth, and value creation for our shareholders."

The locations of the stores set to shut down (and to be built) have not yet been revealed by the company.

Spring expects the new strategy and restructuring to help bring Macy's to financial success by 2024, including "free cash flow to return to pre-pandemic levels" and "annual SG&A dollar growth below the historic rate of inflation of 2%-3%."

In January, Macy's announced that it would be laying off 3.5% of its global workforce while also closing five more department stores, just weeks before Spring took over as CEO earlier this month.

Related: Macy's Cuts Jobs, Closes Stores — CEO Tony Spring Takes Over

"As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company," a Macy's spokesperson told CNN at the time.

Macy's was up over 3.4% in a 24-hour period upon news of the company's restructuring plans.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

This One Word Is a Giveaway That You Used ChatGPT to Write an Email, According to an Expert

"Delve" has increased its presence in written work since ChatGPT entered the scene.

Business News

Yes, You Can Buy a Foldable Tiny Home on Amazon — And Now It's Selling for Less Than $12,000

The waterproof and flameproof house was listed around $35,000 a few months ago.

Starting a Business

4 Common Mistakes That Will Spell Doom Your Ecommerce Business

It's hard to spot a success story before it happens, yet it's easy to tell if a business will struggle. With that in mind, here are the four most common mistakes people make that you should avoid when starting an ecommerce business.

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.