Staying or shutting? Macy’s stores at Modesto’s Vintage Faire Mall get word on closures
Macy’s announced Tuesday that it will be closing 150 “underproductive locations” over the next three years as sales dip and the company looks to expand its higher-end luxury brands.
But the two Macy’s stores in Modesto’s Vintage Faire Mall — one called Macy’s Men’s, Home & Furniture, the other Macy’s Women’s & Children — are not among the ones being shuttered, a manager told The Modesto Bee on Tuesday morning.
Not only are the Modesto stores “safe,” but at least the Women’s & Children one is being upgraded, said Gloria Portillo, a Macy’s merchandiser.
“We’ve got several new brands coming in,” she said while working in the Toys R Us department of the Women’s & Children store in the Sisk Road mall. “We just opened up Pandora bracelets in our jewelry department. We will be changing up our store so our special sizes will be coming back down here (to the ground floor).”
The toys and children’s departments will shift to a different part of the space, Portillo said, “and we’re gonna get brand-new brands right upstairs.”
Looking around the toy department, she noted, “We’re getting ready for the newer toys for spring. We’re getting rid of Christmas stuff that’s going on sale.”
Macy’s saw nearly a 2% drop in sales during the fourth quarter of last year when compared to its fourth quarter of 2022. In 2023 as a whole, its net sales dropped 5.5% and its digital sales dropped 7%.
Tuesday’s announcement comes as new Chief Executive Officer Tony Spring stepped into his role this month, who expressed optimism in his statement.
“Throughout the fourth quarter, we delivered an improved omnichannel experience, with effective merchandising and a clear demonstration of value that resulted in a strong close to the year,” Spring said in the statement.
As part of its new strategy, Macy’s will be closing 50 locations by the end of the fiscal year. This leaves approximately 350 stores, which the company said it will continue to invest in and expand.
Despite its dip in sales, Macy’s announced it would be shifting focus to its higher-end brands of Bloomingdales and Bluemecury, saying that part of its strategy will be opening 15 more Bloomingdale’s nameplate stores and at least 30 new Bluemercury stores over the next three years.
Macy’s said Bloomingdale’s nameplate “saw strength in beauty, women’s contemporary sportswear and the Bloomingdale’s the Outlets business” while Bluemercury “continued to see strength in skincare and color cosmetic categories.”
“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,” the announcement stated.
Department stores have been struggling to compete with the online market since before the pandemic, with a handful of retailers filing for bankruptcy protection in recent years. Earlier this year, Macy’s rejected a $5.8 billion takeover offer from investment firms Arkhouse Management and Brigade Capital Management, The Associated Press reported.
