Macy’s will shutter another 125 of its namesake department stores as it attempts yet again to turn its business around.
The company, which currently operates about 650 stores (including the Bloomingdale’s luxury chain) said on Tuesday that the locations on the chopping block have total annual sales of about $1.4 billion. The stores, which will be closed over the next three years, are in “lower tier malls.” Macy’s will also break from its traditional anchor spot in malls by trying out a concept called Market by Macy’s, which will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options and a robust community events calendar.
The company is confident in its Polaris strategy which has five major components, including “Store Closures and Staffing,” which will involve a store-level assessment of each store’s overall value to the fleet — including predicted profitability based on consumer trends and demographics.
Macy’s will present the details of its turnaround plan, dubbed “Polaris,” on Wednesday at the New York Stock Exchange.
The company is increasing colleague populations in its Mason, Ohio, location and its Progress Place facility in Springdale, Ohio. Other components of the plan include strengthening customer relations, curating quality fashion, accelerating digital growth, and resetting the cost base.
The company is also looking to generate more cash from its real estate, with its eye on bringing in $130 million in the new fiscal year by plans including selling off square footage it doesn’t need. (The company generated $1.6 billion from such transactions since 2016.)