Retailer to close more stores in 2024 – NBC Chicago

Macy’s says it will close more stores than originally planned by the end of 2024 as the company continues its “Bold New Chapter” strategy with a greater focus on luxury growth and modernizing operations.

The update came from Macy’s Chairman and CEO Tony Spring, who spoke during a third-quarter investor call on Wednesday.

NBC News reported earlier this year that the retail giant’s store portfolio — which also includes beauty and skin care spas and Bloomingdale’s and Bluemercury stores — would close 150 stores by 2026, with about 50 to 55 store closures planned for 2024.

At the same time, the retailer announced it would upgrade 350 stores, starting with 50 stores in 2024.

Macy’s now expects to close about 65 locations by the end of 2024, Spring said, with more stores expected to close after the holidays. said.

Spring said the closures were in line with the company’s plans to accelerate “luxury growth.” In particular, Spring cited successful store introductions of new brands, including SKIMS and Jenni Kayne, as well as improvements in designer handbags such as Tory Burch, Coach, Longchamp and Rebag, Macy’s new pre-owned luxury accessories launch.

Earlier this year, several “small format” Macy’s stores opened across the country, including some in the Chicago area. The stores, typically in malls and malls as opposed to large malls, are about one-fifth the size of traditional stores. As of Wednesday, 24 locations had opened across the United States.

The retailer also opened small Bloomingdale’s stores called “Bloomie’s,” including one at the Westfield Old Orchard Mall in Skokie.

It was not immediately clear which Macy’s stores would be closed, and Macy’s did not respond to NBC Chicago’s request for comment. According to the website, there are 19 Macy’s locations in Illinois.

Macy’s Delays Revenue After Employee Hides $151 Million

Macy’s delayed the release of its full third-quarter earnings until Wednesday late last month after completing an investigation into a fraudulent employee who concealed $151 million in delivery costs over nearly three years. According to Spring, the employee’s intent was to cover up the mistake, not to steal the money.

The employee told investigators that an error was initially made in billing the small package shipping costs and that the person then intentionally made errors to hide the error, according to a source close to the investigation, due to the private nature of the information wanted to remain anonymous.

While the company said on Wednesday that the former employee’s cover-up would not have a material impact on the company’s finances, it had to revise its financial statements. More details of the investigation were revealed as the company’s third-quarter results and mixed outlook sent shares down as much as 11% on Wednesday.

Macy’s reported falling profits and sales as the department store chain struggled with restrained customer spending, increasing competition and sluggish demand for cold-weather products. The New York retailer on Wednesday raised sales expectations for the year but cut profit forecasts.

In the first 50 stores that Macy’s upgraded, same-store sales rose 1.9%, officials said, with the retailer trying to find a formula to revive sales. Over the past year, dozens of stores have tested different tactics, such as adding more clerks to fitting rooms and shoe departments. As part of the so-called “First 50” strategy, more visual representations will be implemented in the first branches to be redesigned.

This fall, selling cold-weather items has been challenging due to unseasonably warm weather, the company said. It will be difficult to make up for those losses because the season between Thanksgiving and Christmas is five days shorter than last year, Macy’s said.

The company now expects earnings per share of $2.25 to $2.50 per share for the year, down from the previous estimate of $2.34 to $2.69. However, revenue for the year was forecast to be between $22.3 billion and $22.5 billion, up from the previous forecast of $22.1 billion to $22.4 billion.

“We are encouraged by the steady sales growth at our Macy’s First 50 locations and the strong performance of Bloomingdale’s and Bluemercury,” Spring said. “In the quarter to date, comparable sales across the entire portfolio continue to be above the third quarter level.”