Alex Sevastianos’ Post

Macy's Q4 results: 💵 Total sales: -1.7% 🛍 Comp sales: -5.4% 📉 Net income: -114.0% (unadjusted) These are mediocre numbers. Even with an extra week of trading, Macy's could not engineer sales growth - including off the back of a weak prior year. The big news is that Macy's has a new plan called "Bold New Chapter" which includes "modernizing the shopping environment", pushing more into luxury via the addition of new Bloomingdale's and Bluemercury stores, and streamlining operations. The plans are sensible and give an early sign that new CEO Tony Spring wants to put Macy's house in order. However, Macy's has come up with grand plans before and has completely failed to execute. So most will reserve judgment until they start to see improvements underway. Nevertheless, this is a step in the right direction. #Macys #departmentstores #trading #economy

🛍️Macy's, America's sweetheart department store, is closing 150 stores, constituting 30% of its overall footprint. This strategic move is aimed at revamping the troubled retailer's image and aligning with a luxury-focused approach to enhance sales. The closures primarily target underperforming locations as part of the company's effort to fend off activist investors seeking control of its board. Instead, Macy's plans to concentrate on the expansion of its successful higher-end chains, Bloomingdale's and Bluemercury, recognizing the evolving consumer trend towards either budget-friendly or upscale offerings. This shift positions Macy's to better serve the changing market dynamics, with the middle-class consumer base dwindling. Notably, Macy's stock has experienced a significant decline, plummeting by 75% since its peak in 2015. 📉 If Macy's isn't safe from the rapidly changing consumer behavior and middle class buying power, why would you?! If you can't win on tiny margins like Walmart, I would try focus on serving, "the rich" or "the upper class", or what I call them - "the new middle class". 💰 #marketing #macys #retail #consumerbehavior #buyingpower

Macy's Inc. announced plans to close 150 of its less productive stores over the next three years, which is about one-third of its Macy's locations in the U.S. This move is part of a strategy to fend off acquisition attempts by activist firms Arkhouse Management and Brigade Capital Management. The closures aim to consolidate Macy's presence, possibly allowing employees from closed stores to transfer to nearby locations. Additionally, Macy's plans to open 15 new Bloomingdale’s and 30 Bluemercury locations by 2026 to focus on growth in its higher-end brands. This announcement was made alongside Macy's fourth-quarter results and follows a rejected $5.8 billion buyout offer. The new real estate strategy, unveiled early in CEO Tony Spring’s tenure, is expected to release $600 million to $750 million in assets by 2026. Despite beating fourth-quarter earnings estimates, Macy's forecasted full-year earnings and net sales below analyst expectations, describing 2024 as a year of transition and investment. Macy’s reported a decline in same-store sales across its brands, with the Macy’s namesake brand and Bloomingdale’s experiencing drops, while Bluemercury saw a slight increase. The company's long-term strategy includes adapting to changing consumer preferences for online and off-mall shopping, building on its earlier Polaris strategy aimed at closing 125 stores to stabilize profitability. Macy's emphasizes reallocating resources to its remaining stores and expanding small-format, off-mall locations, highlighting the significant role of real estate in its business model. #Macys #RetailTransformation #StoreClosures #RealEstateStrategy #Bloomingdales #Bluemercury #RetailIndustry #ConsumerTrends #PolarisStrategy #CorporateStrategy

Macy's is charting a bold course in retail, evolving with CEO Tony Spring at the helm. By closing underperforming stores and expanding into luxury markets with new Bluemercury and Bloomingdale's locations, they're adapting to consumer demands and edging out competition. Their innovative approach, combining digital strategies with an upscale focus, shows a commitment to both tradition and modernity. As Macy's reinvents itself, it's a reminder that agility is key in today's digitalized market. What are your thoughts on Macy's strategy? #RetailInnovation #Macy's #BusinessStrategy #DigitalTransformation Join the discussion below. Original article: https://lnkd.in/ekZD3huv

Going along with the small-format store trend, Macy’s announced plans to close approximately 150 underperforming namesake stores, with 50 expected to close by early 2025. The full list of closures was not released, but the stores were described as 'unproductive.' Macy’s intends to direct investments towards approximately 350 remaining stores, with a focus on smaller, suburban formats. Bloomingdale’s, outperforming Macy’s, plans to open roughly 15 new stores over the next three years, targeting new markets. These upscale stores cater to higher-income, trend-focused consumers and offer popular luxury brands. Additionally, Bloomingdale’s is experimenting with smaller concept stores, known as Bloomie’s. Bluemercury was the only brand of the three to post comparable sales growth in the fourth quarter. The brand will see the opening of at least 30 new stores in the next three years, alongside remodeling 30 existing locations. Bluemercury's success is attributed to its focus on beauty products and services, with recent tests of expanded spa offerings. Since Macy’s acquisition in 2015, Bluemercury has grown to 159 locations. #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #macys https://lnkd.in/g6jHecuZ

Are you wondering about the future of Macy's? As someone who had a hand in the creation of the #dinershop in #thecellar, I think Macy's CEO Tony Spring has it exactly right. Despite being "built for another era", Macy's is making strategic moves to adapt to the changing retail landscape. As someone who used to work in a "kitchen electrics" buying role, I remember how much of a headache their #onedaysale used to be. However, I believe that Macy's is on the right track with their recent store footprint closures. What's your take on Macy's growth potential? Check out this article and let's discuss. #retailindustry #strategy #businessgrowth

Tony Spring , CEO of Macy's presenting about Macy's Bold New Chapter Tony is excited about the road ahead with the Macy's family of brands. Street cred to Tony for quoting Jelly Roll's speech from the Grammy's, "The windshield is bigger than the rear-view mirror for a reason." 🤘 Digital and retail transformation started with Bloomingdale's and Blue Mercury. Record year in growth and NPS. Believes Macy's will see success ahead. Key areas of focus across brands ahead: -Strengthen Macy's nameplate - customers needs are not being met. Closing low performing stores -Revitalizing Macy's assortment, more lux brands, adding new private brands by middle of 2025 -Accelerating luxury growth with small format stores called Bloomie's, and 30 new Blue Merc stores, 30 more to be modernized -Simplifying and modernizing operations to ensure improved inventory in the right channels #shoptalk2024

Macy's has unveiled a "Bold New Chapter" with strategic plans aimed at focusing resources and accelerating growth in key areas. To achieve this, #Macys intends to close about 150 underperforming locations, including approximately 50 by the end of the fiscal year. The company will prioritize investment in approximately 350 go-forward locations and the ongoing expansion of small-format stores. Moreover, Macy's aims to seize opportunities for growth in the luxury segment, particularly through its brands Bloomingdale's and Bluemercury. Leveraging its strong position in the luxury market, Macy’s, Inc. plans to expand its store fleet and digital presence. As part of this strategy, around 15 Bloomingdale’s stores and at least 30 new Bluemercury stores will be opened, along with approximately 30 Bluemercury remodels, across new and existing markets over the next three years. #RetailNews #RetailTrends #Bluemercury #Bloomingdales #StoreOpening #Retail #OpeningsandClosings #Rebrand #PressRelease #NewChapter

Macy’s new focus on luxury and closure of underproductive stores: Macy’s, unveils ambitious plans to close 150 underproductive stores, marking a significant shift in strategy over the next three years. Amidst a challenging retail landscape, the company emphasizes a pivot towards luxury shopping experiences. Read more from The Guardian: https://lnkd.in/gxWzVSg3 Tony Spring, Macy’s CEO, heralds this transition as a "bold new chapter," signaling a departure from the status quo and a commitment to modernizing the Macy’s brand. With plans to open 15 upscale Bloomingdale’s stores and 30 Blue Mercury cosmetics locations, the company aims to curate relevant assortments and deliver compelling value to its clientele. Despite challenges, Macy’s remains steadfast in its dedication to customer-centric initiatives, promising improved shopping experiences and prioritizing investments in approximately 350 locations while expanding smaller stores. Spring asserts that employees are energized by the prospect of driving market share gains and sustainable growth, fostering optimism within the company. However, the announcement coincides with a 1.4% drop in Macy’s shares during pre-market trading on Wall Street. Furthermore, the rejection of a $5.8 billion takeover offer underscores Macy’s determination to forge its path forward independently. The retail landscape's evolution, accelerated by the pandemic, underscores the imperative for adaptation. Macy’s, like its counterparts, grapples with shifting consumer behaviors and the rise of e-commerce. Despite posting a net loss of $71 million for the last quarter of 2023, the company remains resolute in its pursuit of long-term viability and shareholder value. As department stores navigate a tumultuous landscape, Macy’s bold strategy reflects a commitment to resilience and innovation, aiming to carve out a sustainable niche in an ever-changing market. #HalifaxWest #WinTogether #capitaladvisory #MandA #restructuring #operatingadvisory #Macys #RetailEvolution #LuxuryShopping #BoldNewChapter #Bloomingdales #BlueMercury