In a bid to revitalize its business amidst challenging market conditions and activist investor pressure, Macy’s revealed plans to shutter approximately 150 underperforming stores over the next three years. The department store giant aims to focus on strengthening its luxury brands, Bloomingdale’s and Bluemercury, while optimizing its store portfolio for long-term sustainability.

The decision to close stores comes as Macy’s seeks to fend off a proposed takeover by activist investors, who have been eyeing the company’s multibillion-dollar real estate assets. The restructuring plan, which includes the closure of 50 stores within the next year, aims to streamline operations and enhance profitability.

Macy’s CEO Tony Spring, who assumed the role this month after leading Bloomingdale’s for nearly a decade, emphasized the importance of prioritizing customer service and refreshing product offerings. He views the challenges facing Macy’s as reminiscent of those encountered at Bloomingdale’s, highlighting the need to strike a balance between retail fundamentals and innovation.

Despite the closures representing about a quarter of Macy’s total square footage, Spring remains optimistic about the company’s future prospects. By raising the bar for store performance criteria, Macy’s aims to ensure that its remaining outlets are positioned for sustained success in an evolving retail landscape.

As Macy’s embarks on this strategic transformation journey, the focus remains on delivering exceptional customer experiences, driving operational efficiency, and adapting to changing consumer preferences. Through targeted store closures and a renewed commitment to core retail principles, Macy’s aims to emerge stronger and more resilient in the competitive retail landscape.