Macy’s has announced it has plans to downsize, closing 150 stores.

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The retailer said it will close 50 locations by the end of 2024 with another 100 closing in the future. CNN reported that by 2026, when the reorganization is expected to be complete, Macy’s plans to have 350 locations.

In a news release, Macy’s called the move “a bold new chapter.”

The closures account for about 30% of Macy’s stores, The Wall Street Journal reported. At one point, Macy’s had about 870 stores, with 643 under the parent company’s brand.

The stores that will be closing account for only 10% of sales, The New York Times reported.

In addition to shuttering Macy’s locations, the company will promote Bloomingdale’s and Bluemercury stores that have performed better than the Macy’s flagship brand. It plans on adding additional Bloomingdale’s and Bluemercury locations.

The change is due as shoppers are looking for lower costs found at retailers such as Walmart for most items, but are still looking for personal luxury items from high-end stores.

While the plans primarily focus on closing underperforming stores, Macy’s will be reimagining some locations, opening 30 smaller stores that are not in malls and trying to bank on shoppers’ desire to visit stores that are not part of traditional malls. The smaller stores have proven to be more profitable as they don’t carry as much merchandise, and don’t have as many employees as large, mall-based stores, CNN reported.

“This isn’t just about shrinking,” Macy’s CEO Tony Spring said, according to The Wall Street Journal. “This is about resizing the portfolio to make sure we are giving people an opportunity to shop the way they want.”

The company released a statement to WFXT, which said:

“Macy’s, Inc.’s new strategy, A Bold New Chapter, is designed to challenge the status quo to fundamentally reposition the company and enhance the customer experience, deliver growth and unlock shareholder value. Over the next three years, our teams will focus on three strategic priorities: strengthen the Macy’s nameplate to return to topline growth, accelerate luxury growth through Bloomingdale’s and Bluemercury and simplify and modernize our end-to-end operations. Macy’s is dedicating resources to optimize our store footprint; refresh our product assortment to ensure relevance and value; and modernize the shopping environment to offer a seamless experience across all channels with continued focus on digital excellence.

“As part of our strategy, we intend to close approximately 150 locations over the next three years so we can prioritize investments in the stores that will lead us to a healthier future. Closing a store is never an easy decision. We are committed to supporting our impacted colleagues with opportunities wherever available across Macy’s, Inc. and to communicating with transparency. Customers can find nearby stores at Macys.com/stores and continue to shop at macys.com and on Macy’s mobile app.”

Macy’s had already laid off 13% of its corporate staff in January and announced the closing of five stores, the newspaper reported. In all the company cut about 2,350 employees at the time, according to The Associated Press.

Employees at affected stores will start finding out on Tuesday, The New York Times reported.

The last time Macy’s closed a large amount of stores was in February 2020, when the company said it was closing 125 stores and laying off 2,000 workers, the Times reported.

A list of stores that are closing in this round was not available as of Tuesday morning.

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Macy's 1880 The first Macy's store, on Sixth Avenue 'Ladies Mile' in New York City, circa 1880. (Photo by Archive Photos/Getty Images) (Archive Photos/Getty Images)

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