Steven PAUL, CDir FIoD’s Post

New CEO of Macy's, Tony Spring, plans to refresh the business with these strategic changes: -Close 30% of underperforming Macy's stores (150 out of 500) within 3 years -Focus on enhancing remaining stores and expanding smaller chains (namely Bloomingdale's & Bluemercury) Enhance customer preferences: -Scale down size of Macy's stores (30,000-50,000 sq ft) -Expand private label offerings -Less cluttered spaces and more attentive service -Optimize clothing presentations and more mannequins Do you think these strategies will be effective? Please share your thoughts! #commericalrealestate #wsj #therealdeal #cre #realestate #finance

Recently, I read a RetailWire article about Macy’s shutting down 150 of its 500 stores. For those in other parts of the world, Macy’s is a department store chain, and its stores often anchor large shopping malls. However, while that describes more than 25% of its stores, it represents less than 10% of sales. Some might say Macy’s is “trimming the fat” or “getting rid of the dogs.” From a financial perspective, that may be true. But it’s more than that. What they are doing is what any good business would do, and that’s changing to keep up with customers’ ever-changing habits and expectations.  Read more: https://lnkd.in/gSXWBUuv #customerservice #customerexperience #EvolvingCustomerNeeds #ShepHyken

Macy's Q4 results: 💵 Total sales: -1.7% 🛍 Comp sales: -5.4% 📉 Net income: -114.0% (unadjusted) These are mediocre numbers. Even with an extra week of trading, Macy's could not engineer sales growth - including off the back of a weak prior year. The big news is that Macy's has a new plan called "Bold New Chapter" which includes "modernizing the shopping environment", pushing more into luxury via the addition of new Bloomingdale's and Bluemercury stores, and streamlining operations. The plans are sensible and give an early sign that new CEO Tony Spring wants to put Macy's house in order. However, Macy's has come up with grand plans before and has completely failed to execute. So most will reserve judgment until they start to see improvements underway. Nevertheless, this is a step in the right direction. #Macys #departmentstores #trading #economy

It’s not at all surprising that Macy’s is closing this many stores across the US over the next three years. Interesting, however, is the pivot towards serving the more affluent market segment by expaning the footprint of luxury stores. A viable strategic option when the market is gigantic and there’s considerable spending power available. This is a strategic pivot that’s not readily available for classical department stores operating is smaller markets and regions with more ”harmonized” consumer segments. #DepartmentStores #Macys #Pivot #StrategicThinking #Strategy #CompetitiveDifferentiation #RetailIndustry

Macy's Inc. announced plans to close 150 of its less productive stores over the next three years, which is about one-third of its Macy's locations in the U.S. This move is part of a strategy to fend off acquisition attempts by activist firms Arkhouse Management and Brigade Capital Management. The closures aim to consolidate Macy's presence, possibly allowing employees from closed stores to transfer to nearby locations. Additionally, Macy's plans to open 15 new Bloomingdale’s and 30 Bluemercury locations by 2026 to focus on growth in its higher-end brands. This announcement was made alongside Macy's fourth-quarter results and follows a rejected $5.8 billion buyout offer. The new real estate strategy, unveiled early in CEO Tony Spring’s tenure, is expected to release $600 million to $750 million in assets by 2026. Despite beating fourth-quarter earnings estimates, Macy's forecasted full-year earnings and net sales below analyst expectations, describing 2024 as a year of transition and investment. Macy’s reported a decline in same-store sales across its brands, with the Macy’s namesake brand and Bloomingdale’s experiencing drops, while Bluemercury saw a slight increase. The company's long-term strategy includes adapting to changing consumer preferences for online and off-mall shopping, building on its earlier Polaris strategy aimed at closing 125 stores to stabilize profitability. Macy's emphasizes reallocating resources to its remaining stores and expanding small-format, off-mall locations, highlighting the significant role of real estate in its business model. #Macys #RetailTransformation #StoreClosures #RealEstateStrategy #Bloomingdales #Bluemercury #RetailIndustry #ConsumerTrends #PolarisStrategy #CorporateStrategy

Leading retail executives from Abercrombie & Fitch Co., Levi Strauss & Co., Under Armour and more share why they believe that 'stores matter' and always will. Check out their insights on why stores enable a more experiential approach than digital and how a more intimate associate experience drives sales across all physical and digital channels. Efficiency and productivity are key to success. Read more on the future of retail predictions here: https://lnkd.in/gvRM-GSC

Going along with the small-format store trend, Macy’s announced plans to close approximately 150 underperforming namesake stores, with 50 expected to close by early 2025. The full list of closures was not released, but the stores were described as 'unproductive.' Macy’s intends to direct investments towards approximately 350 remaining stores, with a focus on smaller, suburban formats. Bloomingdale’s, outperforming Macy’s, plans to open roughly 15 new stores over the next three years, targeting new markets. These upscale stores cater to higher-income, trend-focused consumers and offer popular luxury brands. Additionally, Bloomingdale’s is experimenting with smaller concept stores, known as Bloomie’s. Bluemercury was the only brand of the three to post comparable sales growth in the fourth quarter. The brand will see the opening of at least 30 new stores in the next three years, alongside remodeling 30 existing locations. Bluemercury's success is attributed to its focus on beauty products and services, with recent tests of expanded spa offerings. Since Macy’s acquisition in 2015, Bluemercury has grown to 159 locations. #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #macys https://lnkd.in/g6jHecuZ

🛍️Macy's, America's sweetheart department store, is closing 150 stores, constituting 30% of its overall footprint. This strategic move is aimed at revamping the troubled retailer's image and aligning with a luxury-focused approach to enhance sales. The closures primarily target underperforming locations as part of the company's effort to fend off activist investors seeking control of its board. Instead, Macy's plans to concentrate on the expansion of its successful higher-end chains, Bloomingdale's and Bluemercury, recognizing the evolving consumer trend towards either budget-friendly or upscale offerings. This shift positions Macy's to better serve the changing market dynamics, with the middle-class consumer base dwindling. Notably, Macy's stock has experienced a significant decline, plummeting by 75% since its peak in 2015. 📉 If Macy's isn't safe from the rapidly changing consumer behavior and middle class buying power, why would you?! If you can't win on tiny margins like Walmart, I would try focus on serving, "the rich" or "the upper class", or what I call them - "the new middle class". 💰 #marketing #macys #retail #consumerbehavior #buyingpower

Tony Spring , CEO of Macy's presenting about Macy's Bold New Chapter Tony is excited about the road ahead with the Macy's family of brands. Street cred to Tony for quoting Jelly Roll's speech from the Grammy's, "The windshield is bigger than the rear-view mirror for a reason." 🤘 Digital and retail transformation started with Bloomingdale's and Blue Mercury. Record year in growth and NPS. Believes Macy's will see success ahead. Key areas of focus across brands ahead: -Strengthen Macy's nameplate - customers needs are not being met. Closing low performing stores -Revitalizing Macy's assortment, more lux brands, adding new private brands by middle of 2025 -Accelerating luxury growth with small format stores called Bloomie's, and 30 new Blue Merc stores, 30 more to be modernized -Simplifying and modernizing operations to ensure improved inventory in the right channels #shoptalk2024