Evan Matheson’s Post

The future of Macy's? Just ask Charles E. Fancher, Jr! Chuck Fancher explains the challenge of a potential sale of real estate assets to maintaining retail operation viability. #commercialrealestate #retailnews #retailrealestate #saleleaseback #futureofretail #departmentstore #macys https://lnkd.in/gfBBMDuK

Recently, I read a RetailWire article about Macy’s shutting down 150 of its 500 stores. For those in other parts of the world, Macy’s is a department store chain, and its stores often anchor large shopping malls. However, while that describes more than 25% of its stores, it represents less than 10% of sales. Some might say Macy’s is “trimming the fat” or “getting rid of the dogs.” From a financial perspective, that may be true. But it’s more than that. What they are doing is what any good business would do, and that’s changing to keep up with customers’ ever-changing habits and expectations.  Read more: https://lnkd.in/gSXWBUuv #customerservice #customerexperience #EvolvingCustomerNeeds #ShepHyken

🛍 Macy's is set to close 150 underperforming stores. 🌟 What does this mean for the crown jewel of its real estate porfolio, Herald Square? ☎ I had the chance to chat with Tony Spring on the state of the company, future growth plans and how its real estate, including this iconic location, fits into the store's portfolio, and much more. ➡ In my latest for Yahoo Finance:

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

🏁 Who will win this race? Interesting article in Retail Dive contrasting Macy's and J.C. Penney's different real estate strategies. These two incredible brands cater to two very different markets yet they've occupied anchor positions in the same malls for decades. 📌 Macy's has been famously demalling, opening smaller format stores while closing full-line stores that don’t make the cut. 📌 JCPenney, which has its origins going back to 1902—yep, over 122 years ago—has been a true survivor of wars, recessions, and a pandemic. The historic retail company is sticking to its mall strategy. Not a surprise since it is owned by two major mall REITs, Simon Property Group and Brookfield Properties. Which of these two iconic brands will prevail? Or, is each pursuing the right real estate strategy for their market? Let me know in the comments below! ⬇️ Read the full story here https://bit.ly/3QW5yfi #TSCG #CREtail #RetailStores #CRE #Retail

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 announcement to close 150 stores reflects broader trends in the retail industry. Traditional department stores are struggling to compete with online retailers and discount chains. Consumers are increasingly shifting towards luxury goods or seeking unique experiences. • Macy's is closing underperforming stores and focusing on its luxury brands like Bloomingdale's and Bluemercury. • The company is also opening smaller format stores and investing in its online presence. • This shift reflects the need for retailers to adapt to changing consumer preferences and embrace a more experience-oriented approach. • The downsizing presents opportunities for landlords and developers to repurpose vacant spaces and cater to new retail formats. The retail landscape is undergoing a significant transformation. While brick-and-mortar stores aren't disappearing entirely, they need to offer a differentiated experience that online shopping cannot replicate. Smaller footprints, curated product selections, and a focus on customer experience are key to success in the evolving retail environment.

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

Indeed, the retail landscape is undergoing a significant transformation. The shift towards e-commerce is undeniable, driven by changes in consumer behavior and preferences. While traditional brick-and-mortar stores face challenges, innovative strategies, like blending online and offline experiences, might shape the future of retail. The key lies in adapting to changing dynamics and finding a balance between digital and physical retail spaces. Exciting times ahead