🔨 Macy’s Shake Up: Di Retailer Close 150 Stores but Expand Bloomingdale’s and Bluemercury 🛍️
⬇️ Pidgin ⬇️ ⬇️ Black American Slang ⬇️ English
Di retailer, under new chief executive and with takeover bid on di horizon, don map out three-year strategy to chook “sustainable, profitable growth.” 💼💡💰
“We need to focus on gettin’ di best stores, not di largest number of stores,” Mr. Spring yarn for one call with analysts on Tuesday.
Di company talk say dem go start to inform workers later dat day for stores wey dem plan to close. Dem plan to close roughly 50 stores dis fiscal year and di rest by di end of 2026.
As Macy’s reduce dia retail footprint, Bloomingdale’s dey expected to open 15 locations. Bluemercury, di company’s beauty chain, go add 30 stores, plus remodel others. As of November, di dey 58 Bloomingdale’s and 158 Bluemercury locations. 💅👗🏬
“Dere dey less competition dia, but di problem na say e no clear if di luxury department store really get great future,” David Swartz, one retail analyst for di financial services firm Morningstar talk. “Plenty luxury labels dey sell dia own stuff directly.”
E-commerce sales for Bloomingdale’s dey give di company confidence say adding stores go boost digital sales for areas around. Dem talk say about 80 percent of Bloomingdale’s digital sales dey for markets wey get physical stores.
Di company go open dia smaller-format Bloomingdale’s stores — wey dem dey call Bloomie’s — and outlet stores over di next three years, Mr. Spring yarn for di call. For recent years, di company don dey open smaller stores for strip malls, instead of enclosed malls, wey dey lose shoppers. “Dat na where di whole market dey go,” Mr. Swartz talk.
“It make sense for Macy’s to open stores for those smaller locations, but e don reach too late?” e yarn. “Dey don already get other companies wey dey do di same thing.”
Di decision to cut di midmarket Macy’s chain while increasing di luxury chains’ presence na sign say Mr. Spring want reposition di company’s overall image so consumers go see am as higher-end destination. But, e yarn, dat no mean say di company’s stores go turn to more expensive place to shop.
“I no believe say taste and style need to cost more; I no think say e suppose be reserved for di affluent,” Mr. Spring yarn for one interview. “I think say we need to do better job for our content and for our presentation and for our marketing, so dat di customer go see and go dey inspired by wetin we dey sell.”
Customer research show say people wan better shopping experience for Macy’s, di company talk, whether e be with improved visual merchandising or more help from store workers. Di sale of some of dia assets fit help fund such improvements, including revamping di merchandise assortment and adding more workers for areas like di shoes and women’s ready-to-wear departments.
Macy’s go increase di number of workers for some of dia stores, using data to determine di appropriate staffing levels and training workers on how to recommend products to shoppers and assist dem better for di fitting rooms.
Mr. Spring, wey spend four decades for Bloomingdale’s, take over as di top oga at challenging time. For December, investor group submit one bid wey fit make Macy’s private at value of $5.8 billion. Di investors, Arkhouse Management and Brigade Capital Management, talk say unless di retailer begin share nonpublic information with dem, dem fit carry dia offer go meet shareholders.
Di activists don nominate nine individuals for Macy’s board. Di company yarn for one statement last week say di activists no provide financing details and instead dem choose to start di proxy contest. On Tuesday, Mr. Spring tell analysts say Macy’s board dey evaluate di candidates but ask say dia questions concern only di retailer’s financial results and three-year strategy wey e announce.
After one initial sales boost from consumer spending on all manner of items early for di pandemic, Macy’s don get one sales slump. On Tuesday, di company also report earnings for di fourth quarter, wey include di holiday shopping season. Net sales of $8.1 billion dey in line with analysts’ estimates. Sales for both Macy’s and Bloomingdale’s fall from one year earlier, while those for Bluemercury rise 2.3 percent — one sign say shoppers dey continue to dey drawn to di beauty and skin-care categories.
Di company talk say e go incur one $1 billion charge related to di restructuring and closing of di stores. Shares rise about 6 percent Tuesday morning.
Sales don fall as Macy’s dey struggle to win over di next generation of shoppers and compete for world wey dey increasingly oriented toward e-commerce.
“Macy’s just never put dia best foot forward for di consumer, so consumers don abandon dem and go shop elsewhere,” Neil Saunders, managing director of di research firm GlobalData yarn. “Dis na one bit of turning point for Macy’s.”
Mr. Saunders talk say di announcement na sign say Macy’s management dey try to convince investors — wey don dey vex with di company’s weak profit margins — say dem fit address di retailer’s challenges.
Even before e officially take over, Mr. Spring don start to make im mark. For January, e and di departing chief executive, Jeff Gennette, send one memo to employees say di company plan to cut about 2,300 jobs, or 13 percent of its corporate workforce, as e look to better align its resources with customer behavior and to make decisions faster. Di company also talk say e go close a handful of stores.
Di last major restructuring for Macy’s na for February 2020, when di company talk say e go close 125 stores and cut 2,000 jobs. Then di pandemic come turn many stores dark for weeks, wey force di retailer to scramble to improve its website and e-commerce offerings and figure out how to bring people back to stores once dem reopen.
Mr. Spring yarn on Tuesday say di company no go “bite off more than we fit chew” as e manage di remaining Macy’s stores. “We go dey thoughtful, methodical and unemotional for our approach,” e yarn.
NOW IN BLACK AMERICAN SLANG
🔨 Macy’s Big Moves: Closing 150 Stores, but Bloomingdale’s and Bluemercury Expanding 🛍️
Macy’s, the OG in retail, is making some major moves: they’re shutting down 150 stores while blowing up Bloomingdale’s and Bluemercury. 💼💡💰
With a new boss in charge and a takeover bid on the table, Macy’s is laying out a three-year plan to secure “sustainable, profitable growth.”
“We ain’t about havin’ the most stores, we about havin’ the best stores,” Mr. Spring dropped during a call with the suits on Tuesday.
They’re about to start givin’ the boot to workers at the stores gettin’ axed. ‘Bout 50 stores are gettin’ the boot this year, with the rest goin’ down by the end of 2026.
While Macy’s is slimmin’ down, Bloomingdale’s is about to pop up in 15 new spots. Bluemercury, the beauty spot, is droppin’ 30 new stores and sprucin’ up the ones they got. Last time we checked, there were 58 Bloomingdale’s and 158 Bluemercury spots. 💅👗🏬
“Competition ain’t as fierce there, but luxury department stores ain’t exactly killin’ it,” said David Swartz, a retail guru at Morningstar. “A lot of luxury brands are sellin’ direct these days.”
Bloomingdale’s online sales got Macy’s feelin’ good, so they think puttin’ up more stores will boost digital sales nearby. ‘Bout 80% of Bloomingdale’s digital sales come from areas where they got stores.
Over the next three years, they’re gonna roll out smaller Bloomingdale’s stores, aka Bloomie’s, and outlet stores. Lately, Macy’s been puttin’ up smaller stores in strip malls instead of those big enclosed ones that ain’t gettin’ no love. 💼💡🏢
“It makes sense for Macy’s to hit up them smaller spots, but some wonder if it’s too little, too late,” Swartz pondered. “Other companies already on that wave.”
Cutting back on Macy’s while pumpin’ up the luxury chains shows they’re tryna switch up the company’s image. But, Spring made it clear that don’t mean Macy’s stores gonna start chargin’ luxury prices.
“I don’t think you gotta drop mad cash for good taste and style; that’s for everyone,” Spring explained in an interview. “We just gotta step up our game with what we offer and how we sell it.”
Customers want a better experience at Macy’s, whether it’s through dope displays or more help from the crew. Sellin’ off some assets could help make that happen, like revampin’ the goods and gettin’ more peeps in the shoe and women’s sections.
Macy’s plannin’ to hire more folks in some stores, usin’ data to figure out how many, and trainin’ ’em to hook customers up with the right gear and give better help in the fitting rooms. 💼💡🛒
Spring, who spent forever at Bloomingdale’s, stepped up as boss when times got tough. Last December, some investors tried to swoop in and take Macy’s private for a cool $5.8 billion. They wanted Macy’s to spill the beans on some secret info, or they were gonna take their offer straight to the shareholders.
Them investors threw nine names in the hat for Macy’s board. The company’s checkin’ ’em out, but Spring’s keepin’ it focused on the financials and the three-year plan.
After an initial boost from folks buyin’ everything during the pandemic, Macy’s been strugglin’ lately.
On Tuesday, they dropped earnings for the fourth quarter, including the holiday season. Sales hit $8.1 billion, just like the analysts predicted. Sales at both Macy’s and Bloomingdale’s were down from last year, but Bluemercury’s sales went up 2.3%. Seems like folks still into beauty and skincare.
The company said they’ll take a $1 billion hit for the shakeup. Shares went up about 6% Tuesday morning.
Macy’s been losin’ customers ’cause they ain’t keepin’ up with the times and the shift to online shopping.
“Macy’s been slackin’, so people been shoppin’ elsewhere,” said Neil Saunders, from GlobalData. “This is a chance for Macy’s to turn things around.”
Saunders thinks this move shows Macy’s is serious about fixin’ their problems and makin’ investors happy.
Even before officially takin’ charge, Spring was already makin’ moves. Last January, he and the old CEO announced plans to cut 2,300 jobs, or 13% of the corporate crew, and close some stores to better match up with what customers want and make decisions faster. Last time they did a big shakeup was in February 2020, when they closed 125 stores and cut 2,000 jobs. Then the pandemic hit and made things even messier.
Spring said they ain’t gonna rush with the remaining Macy’s stores. “We gonna take our time, do things right, and keep our cool,” he said.
NOW IN ENGLISH
🔨 Macy’s Plans Closure of 150 Stores, Yet Bloomingdale’s and Bluemercury Set to Expand 🛍️
Macy’s, a well-known retailer, is gearing up to shut down 150 of its stores while simultaneously ramping up the expansion of Bloomingdale’s and Bluemercury. 💼💡💰
Under new leadership and amidst a takeover bid, the company has outlined a three-year strategy aimed at achieving “sustainable, profitable growth.”
“We need to focus on having the best stores, not the largest number of stores,” Mr. Spring stated during a call with analysts on Tuesday.
The company announced plans to begin notifying workers at the affected stores later that day. Approximately 50 stores are slated for closure this fiscal year, with the rest to follow by the end of 2026.
As Macy’s scales back its retail presence, Bloomingdale’s is expected to open 15 new locations, and Bluemercury, the beauty chain, will add 30 stores while refurbishing others. As of November, there were 58 Bloomingdale’s and 158 Bluemercury locations. 💅👗🏬
“While there’s less competition in that sector, the challenge lies in the uncertain future of luxury department stores,” remarked David Swartz, a retail analyst at the financial services firm Morningstar. “Many luxury labels are opting for direct sales.”
Bloomingdale’s e-commerce sales have given the company confidence that adding more stores will bolster digital sales in surrounding areas. About 80% of Bloomingdale’s digital sales come from markets where physical stores are present.
Over the next three years, the company plans to open smaller-format Bloomingdale’s stores, known as Bloomie’s, as well as outlet stores. In recent years, Macy’s has been focusing on opening smaller stores in strip malls rather than enclosed malls, which have seen a decline in foot traffic. 💼💡🏢
“It makes sense for Macy’s to venture into these smaller locations, but one wonders if it’s too late,” Swartz pondered. “Other companies are already doing the same.”
The decision to downsize the midmarket Macy’s chain while expanding the luxury chains indicates a strategic shift in the company’s overall positioning. However, Spring clarified that this does not necessarily mean that Macy’s stores will become more expensive places to shop.
“I don’t believe that style and taste need to come at a higher price; it shouldn’t be limited to the affluent,” Spring emphasized in an interview. “We need to enhance our content, presentation, and marketing so that customers are inspired by what we’re offering.”
Customer research has revealed a desire for an improved shopping experience at Macy’s, whether through enhanced visual merchandising or increased assistance from store associates. The sale of certain assets could help fund such enhancements, including revamping the merchandise assortment and hiring more workers in key departments.
Macy’s plans to increase staff levels in some stores, using data to determine appropriate staffing levels and training employees to better assist customers and recommend products. 💼💡🛒
Spring, who spent four decades at Bloomingdale’s, assumed the top position at a challenging time. In December, an investor group made a bid to take Macy’s private at a value of $5.8 billion. The group, comprising Arkhouse Management and Brigade Capital Management, threatened to take their offer directly to shareholders unless Macy’s shared nonpublic information with them.
The activists have nominated nine individuals for Macy’s board, prompting the company to evaluate the candidates. However, Spring requested that questions from analysts focus solely on the retailer’s financial results and the three-year strategy.
Despite experiencing an initial sales boost during the pandemic, Macy’s has faced a sales downturn as it struggles to attract the next generation of shoppers amidst growing e-commerce trends.
“Macy’s has failed to adapt to changing consumer preferences, leading customers to shop elsewhere,” said Neil Saunders, managing director of the research firm GlobalData. “This marks a turning point for Macy’s.”
Saunders believes the announcement signifies Macy’s management’s attempt to convince investors, who have been frustrated with the company’s weak profit margins, that they can address its challenges.
Even before officially assuming his role, Spring began making changes. In January, he and departing CEO Jeff Gennette announced plans to cut about 2,300 jobs, or 13% of the corporate workforce, to better align resources with customer behavior and make faster decisions. The company also announced the closure of several stores.
Macy’s last major restructuring was in February 2020, when it announced the closure of 125 stores and the elimination of 2,000 jobs. The pandemic further disrupted operations, forcing the retailer to enhance its online offerings and devise strategies to attract customers back to stores once they reopened.
Spring emphasized that the company will take a cautious and methodical approach to managing the remaining Macy’s stores. “We’ll be thoughtful, methodical, and pragmatic in our approach,” he stated.
