Financially beleaguered retailer Macy's announced on Tuesday (Feb. 27) the closure of approximately 150 stores nationwide as a part of a massive restructuring that would see it pivot to a greater focus on luxury sales.
According to Macy's they are calling the move to shutter "underproductive" locations a "bold new chapter," with approximately 50 stores targeted for closure by the end of the company's current fiscal year.
In an email, a Macy's representative declined to comment about which specific stores were closing, NBC News reported.
The closures would leave approximately 350 Macy's locations, as well as Bloomingdale's and Bluemercury beauty and skincare stores. However, the latter two have outperformed Macy's stores, thus influencing the firm's restructuring to take advantage of its leadership position in the luxury market.
The company plans to build 15 new Bloomingdale's stores and at least 30 new Bluemercury stores, along with roughly 30 Bluemercury remodels, over the next three 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 news release.
Macy's has been under pressure from investor activists seeking an outright sale of the company due to its decadelong underperformance, with Macy's real estate considered its most valuable asset. However, the company recently rejected a takeover offer, saying that it could undervalue the firm.
Wall Street's immediate reaction to Tuesday's announcement was negative, with shares trading more than 2% lower in premarket action.
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