By the end of January 2025, the massive department store chain Macy’s intends to eliminate 65 locations, adding 15 more to its list.
The retail behemoth had previously said that it will close roughly fifty outlets, but it has subsequently raised that figure. Adrian Mitchell, the chief financial officer and chief operating officer of Macy’s, stated in a call obtained by the Motley Fool on December 11 that the market for deals is currently quite favorable.
Regarding real estate, Mitchell stated that we recorded $66 million in asset sale gains during the quarter, which was a result of several acquisitions being carried over from the fourth quarter into the third. The climate for negotiating deals is still favorable. We used to anticipate closing between 55 and 50 locations at the start of the year, but as Tony indicated, we now anticipate closing roughly 65 locations this year.
The business recently decided to eliminate roughly 150 underperforming sites by 2026, and these outlets are part of that plan. Although Macy’s has not yet disclosed which stores would close, it has announced that the closures will take place following the holidays.
The corporation owns Bloomingdales and Bluemercury cosmetics properties in addition to 479 department stores and 24 smaller outlets.
According to Syracuse.com, a Macy’s employee purposefully withheld up to $154 million in expenses, which caused the full Q3 earnings report to be delayed last month.
The inquiry into this employee is now complete, according to Tony Spring, CEO of Macy’s.
“We’ve finished our investigation,” Spring stated. We have concluded that the person who caused the problem acted alone, purposefully made false accounting accrual entries starting in Q4 2021 and later periods, and did not do so for personal benefit. As stated in our press release this morning, since all of our vendors were paid in full, we have determined that these incorrect entries had no effect on our cash position and had no discernible effect on our overall financial results.
Despite this, Spring claimed that the business is well into its Bold New Chapter Strategy and that the third quarter saw strong performance from its outlets.
We’ve now completed three-quarters of our three-year Bold New Chapter strategy, and three straight quarters of increased sales and better Net Promoter Scores have resulted in our third consecutive quarter of positive comps in Macy’s First 50 locations. Bloomingdale’s and Bluemercury also had positive comps in the third quarter.
All of their stores are performing well, Spring added, and this new strategy will bring them one step closer to becoming a more successful Macy’s Inc.
According to Spring, all of our nameplates are in a strong position for expansion, bolstered by end-to-end operations that are enhancing enterprise-wide inventory management and producing cost savings and benefits for customers. We think that our Bold New Chapter initiatives, such as closing about 65 non-go-forward sites this year, bring us even closer to our go-forward end goal of being a more successful Macy’s, Inc., even if we still have work to do.
It’s unknown if any of the 22 Macy’s stores in Pennsylvania will close within the next two years.
Stories by
Kaylyn Greene
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