New York, NY (February 27, 2024) – Macy’s Inc. (NYSE: M) announced a comprehensive plan named “A Bold New Chapter” designed to revitalize the company and drive sustainable growth. This strategy focuses on strengthening the Macy’s brand, accelerating luxury growth through Bloomingdale’s and Bluemercury, and streamlining operations for efficiency.
Key Highlights:
- Strengthening Macy’s: The company will prioritize three areas:
- Enhanced Assortment: Offering more relevant and valuable products.
- Modernized Shopping Experience: Creating a seamless omnichannel experience (physical stores and online) with a focus on digital excellence.
- Optimized Store Footprint: Closing around 150 underperforming stores, including 50 closures by the end of the fiscal year, while investing in the remaining 350 locations and expanding small-format stores.
- Accelerating Luxury Growth: Building on the success of Bloomingdale’s and Bluemercury, Macy’s plans to:
- Open 15 new Bloomingdale’s stores.
- Open at least 30 new Bluemercury locations and remodel 30 existing ones over the next three years.
- Simplifying and Modernizing Operations: Macy’s will focus on:
- Streamlining the supply chain and fulfillment processes.
- Improving inventory management and allocation.
- Developing a scalable technology platform.
Expected Financial Outcomes:
- Low-single-digit annual sales growth for Macy’s and its partners.
- Reduced annual operating expenses growth compared to historical inflation rates.
- Mid-single-digit annual growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
- Capital expenditures below 2024 levels.
- Returning to pre-pandemic levels of free cash flow.
This new strategy underscores Macy’s commitment to innovation and customer-centricity as it navigates the evolving retail landscape. By focusing on these key initiatives, the company aims to achieve long-term success and create value for its shareholders.
For more details on “A Bold New Chapter,” visit macysinc.com/investors.
