Macy’s to close 150 stores, status of Fargo location unknown

NEW YORK (KVRR/CNN) – Macy’s is closing 150 underperforming stores — 50 by the end of 2024 and the other 100 over the next few years. By 2026, it will have just 350 Macy’s stores, the company announced.

The company says it plans to focus on its Bloomingdale’s and Bluemercury brands — luxury stores that have outperformed the Macy’s brand. It will open more, smaller versions of those stores over the next several years.

It’s not known if the Macy’s store at West Acres Shopping Center in Fargo is being closed. “We do not have a list to share at this time,” Macy’s said in a statement.

As the middle class has shrunk in recent decades, the retail market has split: Lower-end stores focused on cost-savings, such as Walmart, have done particularly well. But so have luxury brands, as shoppers with means have been able to keep up their spending, despite higher prices.

So Macy’s is chasing wealthier shoppers with luxury brands such as Bloomingdale’s and Bluemercury, and it’s pulling back on some of its full-scale department stores that cater primarily to more middle-class customers.

Macy’s will also build 30 smaller stores over the next two years away from malls, reflecting a trend of consumers choosing smaller stores outside of enclosed shopping malls. Smaller stores are also more profitable for Macy’s because they have fewer workers and carry less merchandise.

Macy’s and the entire department store sector have been hit on all sides in recent years. Department stores have been pressured by the rise of Amazon, the growing strength of discount chains such as TJ Maxx, and online brands.

Macy’s stock price has dropped 75% from a peak of $73 a share in 2015. Since then, it has closed nearly 300 stores — almost one third of its locations — but still operates about 700 across its brands.

Last month, Macy’s announced it was laying off about 3.5% of its workforce, or roughly 2,350 employees.

The company’s struggles have attracted the attention of activist investors. Macy’s rejected an unsolicited $6 billion bid from an activist investor to take the famed department store private last month. The activist group is taking another shot at Macy’s, launching a proxy fight to take control of the board.