For the Macy’s branded stores, the company plans to invest more in smaller locations. The company has 12 small-format Macy’s stores, and has previously said it will open 30 more over the next two years.
“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” Macy’s CEO Tony Spring said in a statement.
Sales at Macy’s namesake department stores were down 2.5 percent in the fourth quarter of 2023 compared with the same period a year earlier. Bloomingdale’s and Bluemercury did well by comparison, gaining 3.5 percent and 7.8 percent respectively.
Macy’s has been facing a takeover attempt from two investment firms, Arkhouse Management and Brigade Capital Management, which launched a proxy battle to get seats on the Macy’s board after management rejected a $5.8 billion acquisition offer.
The retailer hopes it can bring customers back by focusing on its specialized brands. That means revitalizing some of its older brands and creating new ones, while making investments such as renovating Bluemercury stores.
“This strategy is designed to create a more modern Macy’s, Inc. that is expected to generate meaningful value for our shareholders in the years ahead,” Spring said.
Last month, the company announced that it would lay off about 3.5 percent of its workforce, roughly 2,350 employees.
Macy’s stock declined about 1 percent in premarket trading Tuesday.
This is a developing story and will be updated.
