Macy's Department Store Restructuring

SOURCE npr.org
Macy's plans to close 150 department stores to focus on luxury goods, shifting away from traditional middle-class shoppers. The company will open more high-end stores like Bloomingdale's and Bluemercury, and add smaller stores at outdoor shopping centers.

Key Points

  • Closing underproductive stores
  • Opening high-end stores like Bloomingdale's and Bluemercury
  • Adding smaller stores at outdoor shopping centers
  • Focus on luxury goods
  • New CEO leading the restructuring

Pros

  • Focus on luxury goods may attract a new customer base
  • Opening more high-end stores can increase revenue
  • Adding smaller stores at outdoor shopping centers aligns with current shopping trends

Cons

  • Closing 150 department stores may lead to job losses
  • Shift away from traditional middle-class shoppers could alienate loyal customers
  • Battling activist investors may create uncertainty for the company