Macy’s To Close 150 Stores: Will Rhode Island Stores Be Affected?

RHODE ISLAND — Macy’s plans to close 150 underperforming stores amid slipping sales, the department store chain said Tuesday. It’s unclear if Rhode Island stores are among those that will be shuttered.

The announcement came after the company posted a fourth-quarter loss and declining sales. At the same time, the company signaled a pivot to its luxury brands, saying it will open 15 higher-end Bloomingdale’s stores and 30 of its luxury Blue Mercury cosmetics locations.

Macy’s has two stores in Rhode Island — one at Providence Place — and the other at the Warwick Mall.

The iconic department store chain plans to close 50 of the targeted stores by the end of 2024, and another 100 over the next few years. By 2026, Macy’s will have 350 stores, the company said.

Macy’s faces a proxy fight from Arkhouse Management which nominated a slate of nine directors for election to Macy's board last week. Last month, Macy's rejected a $5.8 billion takeover offer from the hedge fund and Brigade Capital Management, an investment manager.

Activist investors and pressure to increase sales are just two critical issues facing new CEO Tony Spring, who succeeded Jeff Gennette earlier this month.

"We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value," Spring said in a statement.

Even before the pandemic, department stores were facing intense competition from online rivals. Neiman Marcus and JCPenney both filed for Chapter 11 bankruptcy protection.

Consumers have proven resilient and willing to shop even after a bout of inflation, though behaviors have shifted, with some Americans trading down to lower-priced goods.

Macy's is maneuvering to shore up sales by accelerating the expansion of small-format stores that can provide more convenience to its customers. It announced plans in October to add up to 30 small-format locations through the fall of 2025, bringing the total number to roughly 42. The next round of expansion starts in the fall.

Even with the shift in focus, Macy’s is cutting jobs. The department store said in January it would trim about 2,350 employees, or about 3.5 percent of its workforce, and would close five stores.

The Associated Press contributed reporting.