Macy’s, Inc. Announces “A Bold New Chapter” – Challenging the Status Quo to Fundamentally Reposition the Company, Enhance the Customer Experience, Deliver Growth and Unlock Shareholder Value
27 Februar 2024 - 12:55PM
Business Wire
Strengthens the Macy’s Nameplate, Accelerates
Luxury Growth and Simplifies and Modernizes End-to-End
Operations
Focuses Macy's resources by closing
approximately 150 underproductive locations through 2026
Prioritizes Macy’s investments in approximately
350 go-forward locations
Expands Bloomingdale’s and Bluemercury
footprint by up to 45 locations through 2026
Monetizes $600-$750 million of assets through
2026
Macy’s, Inc. (NYSE: M) today announces its new strategy, A Bold
New Chapter, designed to return Macy’s, Inc. to enterprise growth.
Developed by the Macy’s, Inc. leadership team, with the full
support of the board of directors, the strategy balances the art
and science of retail and is informed by comprehensive customer
research.
“A Bold New Chapter serves as a strong call to action. It
challenges the status quo to create a more modern Macy’s, Inc. We
are making the necessary moves to reinvigorate relationships with
our customers through improved shopping experiences, relevant
assortments and compelling value,” said Tony Spring, chief
executive officer, Macy’s, Inc. “Our teams are energized by the
work ahead as we accelerate our path to market share gains,
sustainable, profitable growth and value creation for our
shareholders.”
A Bold New Chapter
The new strategy aligns the Macy’s, Inc. team across three
strategic priorities:
- Strengthen the Macy’s Nameplate: Macy’s plans to put the
customer first, prioritizing three key areas to return to top-line
growth: 1) Revitalizing the assortment to improve both relevance
and value; 2) Modernizing the shopping environment to facilitate a
convenient, easy, and frictionless customer experience across
channels with continued focus on digital excellence; and 3)
Focusing resources by closing approximately 150 underproductive
locations, including approximately 50 by the end of the fiscal
year, and prioritizing investment in approximately 350 go-forward
locations and the continued expansion of small-format stores.
- Accelerate Luxury Growth: Macy’s, Inc. plans to take
advantage of its leadership position in the luxury market, where
Bloomingdale’s and Bluemercury have been outperformers within the
Macy’s, Inc. portfolio and across the broader luxury landscape, by
further growing its store fleet and digital presence. As part of
the strategy, approximately 15 Bloomingdale’s nameplate stores and
at least 30 new Bluemercury stores, along with roughly 30
Bluemercury remodels are anticipated to be opened in new and
existing markets over the next three years.
- Simplify and Modernize End-to-End Operations: Over the
next three years, the organization plans to rationalize and
monetize the supply chain asset portfolio, streamline fulfillment,
improve inventory planning and allocation, and deliver a scalable
technology platform. Across the organization, Macy’s, Inc. plans to
align operations to anticipated future omni-demand and deliver a
more efficient operating model that will allow the organization to
better serve customers.
Financial Outcomes
With a strong financial foundation, Macy’s, Inc. is positioned
to successfully drive sustainable, profitable growth and create
shareholder value. Beginning in 2025, Macy’s, Inc. expects:
- Low-single-digit annual comparable Owned + Licensed +
Marketplace sales growth;
- Annual SG&A dollar growth below the historic rate of
inflation of 2%-3%;
- Annual Adjusted EBITDA dollar growth in the mid-single-digit
range;
- Capital spend to be below 2024 levels; and
- Free cash flow to return to pre-pandemic levels.
Financial outcomes do not include any potential impact of the
proposed credit card late fee ruling.
For additional details on A Bold New Chapter, visit
macysinc.com/investors.
About Macy’s, Inc.
Macy’s, Inc. (NYSE: M) is a trusted source for quality brands
through our iconic nameplates – Macy’s, Bloomingdale’s and
Bluemercury. Headquartered in New York City, our comprehensive
digital and nationwide footprint empowers us to deliver a seamless
shopping experience for our customers. For more information, visit
www.macysinc.com.
Forward-Looking Statements
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Macy’s management and are subject to significant risks and
uncertainties. Actual results could differ materially from those
expressed in or implied by the forward-looking statements contained
in this release because of a variety of factors, including Macy’s
ability to successfully implement A Bold New Chapter strategy,
including the ability to realize the anticipated benefits within
the expected time frame or at all, conditions to, or changes in the
timing of proposed real estate and other transactions, prevailing
interest rates and non-recurring charges, the effect of potential
changes to trade policies, store closings, competitive pressures
from specialty stores, general merchandise stores, off-price and
discount stores, manufacturers’ outlets, the Internet and catalogs
and general consumer spending levels, including the impact of the
availability and level of consumer debt, possible systems failures
and/or security breaches, Macy’s reliance on foreign sources of
production, including risks related to the disruption of imports by
labor disputes, regional or global health pandemics, and regional
political and economic conditions, the effect of weather,
inflation, and labor shortages, the amount and timing of future
dividends and share repurchases, our ability to execute on our
strategies or achieve expectations related to environmental,
social, and governance matters, and other factors identified in
documents filed by the company with the Securities and Exchange
Commission, including under the captions “Forward-Looking
Statements” and “Risk Factors” in the company’s Annual Report on
Form 10-K for the year ended January 28, 2023. Macy’s disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240227639962/en/
Media – Kah Yee Teh and Chris Grams
communications@macys.com
Investors – Pamela Quintiliano investors@macys.com
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