New Jersey news: Macy’s is closing 150 stores as it aims to focus more on selling luxury products and running its business efficiently.
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- Macy’s is set to close 150 stores by 2026 to focus on luxury retail and improve sales.
- The company will expand Bloomingdale’s and Bluemercury brands while opening smaller stores outside traditional malls.
- New CEO Tony Spring is steering the “Bold New Chapter” initiative to revitalize the brand and adapt to changing consumer demands.
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Major Store Closures in New Jersey
Macy’s has announced that it will be closing 150 of its stores, approximately 30% of its total locations. This decision comes as part of a broader initiative to rejuvenate sales and realign its brand more closely with luxury goods and services. They plan to do this over the next three years, hoping it will strengthen their place in the market and improve their customers’ shopping experience as shopping trends continue to change quickly.
Why Macy’s Is Closing Stores in NJ
Macy’s has decided to close these stores to deal with stores that aren’t doing well and use their resources and efforts in more profitable and promising areas. Even though these 150 stores take up about a quarter of Macy’s total space, they only bring in about 10% of its sales.
This choice shows Macy’s effort to make their collection of stores better match what shoppers want and the latest shopping trends. Macy’s hasn’t shared which stores will close, but New Jersey, which houses 25 Macy’s locations, could potentially feel the impact of these closures.
Workforce Impact in New Jersey
Alongside the store closures, Macy’s has also made a tough decision to lay off approximately 2,350 employees, constituting about 3.5% of its workforce. This shows how tough things are for Macy’s as it tries to keep up with how fast shopping is changing, especially with more people buying things online.
A Focus on Luxury and Small-Format Stores
Macy’s plans to close 50 stores by the end of 2024, with the remaining 100 to follow over the next two years. This is part of a “Bold New Chapter” initiative under the leadership of new CEO Tony Spring. The initiative addresses the loss of traditional middle-class shoppers, who have drifted towards other retailers or direct online purchases.
Despite reducing its physical footprint, Macy’s will expand its luxury brand presence by opening 15 new Bloomingdale’s, more than 30 Bluemercury stores, and remodeling the existing Bluemercury locations. The company also intends to double its count of small-format stores located outside traditional malls within the year.
Real Estate and Financial Strategy
The company plans to monetize the assets with the closure of some stores that Macy’s owns, projecting proceeds of approximately $500 million to $650 million from non-go-forward store monetization, alongside $250 million to $350 million from asset sale gains. This move is part of Macy’s strategy to optimize its asset base and invest in areas with the highest potential for growth and profitability.
What This Means for New Jersey
The closure of Macy’s stores in New Jersey remains a concern for local employees, shoppers, and the retail landscape. However, expanding small-format stores and luxury brands could offer a silver lining by providing new shopping experiences and potentially creating jobs. As Macy’s redefines its strategy to focus on profitability and customer satisfaction, the long-term impact on New Jersey’s retail scene will depend on how these changes resonate with consumers and how the company faces the challenges ahead.
