Macy’s New Announcement Hits the Kill Switch on 150 Stores, But Shares Unexpectedly Spike 13%?

Macy’s just announced they’re pulling the plug on 150 stores by 2027, and let’s be honest, it feels like we all saw this coming. It’s like watching the final episode of a show that should’ve ended seasons ago—nostalgic, sure, but you know it’s time. Last time I walked through Macy's with my wife to buy a bottle of their $100 perfume, I felt like I was on the set of Friends (or insert any other 90’s sitcom), back when hanging out at the mall was the ultimate weekend plan, and Jeff Bezos was just some skinny guy with a weird laugh who sold books online.

(Source: lohud) 

Of course this decision is mostly just about cutting losses to appease shareholders, but Macy’s is finally letting go of stores that just don’t fit the business anymore. These 150 stores have become a drag, making up only 10% of Macy’s sales but taking up 25% of their space. Even Macy’s CEO, Tony Spring, had to swallow the hard truth and admit that these stores were designed for a different time. Going to the mall used to be a big family outing. Now, the only time I go to the mall is to grab a quick pretzel from Auntie Anne's aside from last minute Christmas shopping. Macy’s is just facing the facts and moving on.

But Macy’s isn’t just disappearing into the retail afterlife without a fight. Nope, they’ve got a plan, and it’s got a fancy name too—“A Bold New Chapter”. Sounds like the title of a daytime soap opera you’d watch with your grandma. But Macy’s is serious, doubling down on their upscale city stores, determined to prove they still have a place in 2024. And guess what? Wall Street is totally buying it. Macy’s stock has jumped 13% since they announced this grand plan.

Now, let’s talk about the elephant—or rather, the ghost—in the room. What happens to those big, empty storefronts left behind? You can bet Spirit Halloween is already eyeing them like me when I’m waiting for Chick-fil-a to roll out the summer peach milkshake. We all know the drill—every time a big retail space goes dark, it’s only a matter of time before it’s decked out in black and orange with plastic skeletons greeting you at the door. In all seriousness, while Macy’s is doing everything it can to avoid becoming the next K-Mart, keep an eye on who might swoop in to grab that empty space. 

But before it comes to that, if you’re near one of those closing Macy’s, now’s the time to take one last stroll around the perfume counter. Just be careful—once those salespeople lock eyes with you, you might find yourself taking out a credit card for lotion and perfume you will never use.

Macy’s stock is down over 9% year to date.

Stocks.News holds a position in Macy’s.