Lights shine near a closed Macy’s Herald Square as people remain at home to stop the spread of coronavirus on March 29, 2020 in New York City.
Noam Galai | Getty Images
Macy’s is betting malls will make it. But only the best malls. And so it’s looking to grow elsewhere.
“We continue to believe that the best malls in the country will thrive,” Chief Executive Jeff Gennette told analysts Wednesday. “However, we also know that Macy’s and Bloomingdale’s have high potential [off]-mall and in smaller formats.”
The department store chain is planning to test several, smaller Macy’s stores outside of shopping malls, as well as a Bloomingdale’s store off-mall, the CEO said. It is also still looking to grow its off-price business through Macy’s Backstage.
In February, prior to the pandemic striking, Macy’s announced it planned to shut 125 stores over the next three years. Gennette said Wednesday that those plans still have not changed. However, he said Macy’s is monitoring its competition closely and may adjust its store closure timeline, as needed.
Macy’s ended the second quarter with 771 stores, including Bloomingdale’s and Bluemercury.
Macy’s shares jumped more than 5% Wednesday morning, after the retailer reported a narrower-than-expected loss, and stronger sales, thanks to a boost from its online business.