Macy’s CEO Tony Spring is currently under high pressure to perform, as reported by GroovyEra.com. “Macy’s has been attritioning store traffic and sales for several quarters – this isn’t a surprise to investors,” chief research officer Hitha Herzog said.
“The expectation on Spring to turn the sales and traffic problem around is high, and as we inch closer to his year tenure, his ability to deliver will be scrutinized,” Herzog said.
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Spring intends to close 55 locations by the end of 2024 in hopes of driving future growth.
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“We’re very pleased with the value we’re able to unlock in those deals and those transactions,” chief financial officer Adrian Mitchell said regarding the store’s selling off of real estate which is no longer in use.
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Initially, Macy’s announced the closure of 150 underperforming stores over the next three years, with 50 scheduled to close by year-end.
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Employees have speculated about which locations may be affected, and retail experts have pointed to a decline in store quality and product selection as reasons for Macy’s difficulties.
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The company, under Spring, aims to reduce its total stores to 350 nationwide by 2026 and shift focus to its luxury brands, Bloomingdale’s and Bluemercury.
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The move reflects broader challenges in the retail sector, with many department stores facing significant sales declines and competition from online retailers.
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Retail expert Neil Saunders said that some locations have been ‘left to rot’ and have been showing signs of neglect.
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‘The biggest things that have gone wrong at Macy’s are the quality of the stores and the product assortment,’ Saunders, an analyst at GlobalData Retail, told DailyMail.com earlier this year.
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