I love how some media skews things.babs wrote: ↑February 27th, 2024, 7:00 amWait... didn't they already close all their poorly performing stores? I'm now starting the countdown clock for them. T-5 years and counting.mbz321 wrote: ↑February 27th, 2024, 6:56 am And speaking of Macy's.....news broke today that 150 locations are to close in the next few years.
https://www.cnn.com/2024/02/27/investin ... index.html
So conveniently this news comes out and validates my (and others here) concerns about the poor consistency of the Macy's operation. But the headlines are different depending on where you look. CNBC is discussing the fact that Macy's is OPENING more stores and will remodel and upgrade all the stores they're keeping. Then they're going to get rid of what we can all presume are the dumps in the wave of 150 ahead. And they're also OPENING MORE Bloomingdales, presumably to capture business from the distracted and underperforming Nordstrom. And they're OPENING MORE Bluemercury stores.
Also, Macy's has been preparing to prune where they have two stores in the same mall. They oddly enough count two stores as one in their store count, but then will report it as a store closure when they consolidate into a single building. This means that they may be closing 150 stores, but that doesn't actually mean they're leaving 150 malls or shopping centers. They'll just move to having only one building which makes a ton of sense especially when they have oversized facilities. And they have made it clear to investors that 99% of the stores are profitable and cash flow positive (so assume the 1% that wasn't were the 5 or so stores they announced closing a few weeks ago). Thus this closure wave is intended to bolster profitability even further and strengthen the company. They made a good profit this year, good enough that they decided to record the closing costs for these 150 buildings immediately instead of in the future.
All I see is investment into expanding the business, as well as fixing the problems. The new CEO obviously has decided that the dumpy stores need to go and more importantly he said they're going to add payroll to improve service and upgrade the stores being kept. Sounds like all good news to me, not anything like the end of days. They're not going out of business, quite frankly they make too much money to do so. They aren't Sears.