Bloomingdale’s stores will strike out into uncharted territory. Here’s why they need to

NEW YORK – While the decision to shutter 150 Macy’s stores has captured the lion’s share of attention, a couple of eye-opening data points emerged about Bloomingdale’s reach in the U.S.

Spoiler alert: It’s not very broad.

Of the top 50 designated market areas in the U.S., the Bloomingdale’s nameplate is physically only in 14. More telling is the fact that roughly 80% of Bloomingdale’s digital sales come from markets where it has physical store locations. Those locations are mostly coastal – a situation, Macy’s Inc. CEO Tony Spring suggested, that is no longer in keeping with the times.

A Transitional Year: The days of keeping a Macy’s store alive for positive cash flow are over.

“The adage that fashion trends begin in L.A., New York or Miami and then migrate no longer holds true. With the rapid growth of social media and recent population-ships, the fashion playing field has leveled and psychographics have moved,” he noted during the company’s Feb. 27 analyst call.

Over the coming 3 years, Macy’s Inc. now plans to accelerate the opening of Bloomie’s small-format concept stores and Bloomie’s outlet stores. The rollout will encompass a combined 15 units in new and existing markets.

As of Feb. 3, Macy’s Inc. operated 33 Bloomingdale’s, three Bloomie’s and 21 outlets, which the company refers to collectively as the Bloomingdale’s nameplate. The first Bloomie’s opened in September 2021 in Fairfax, Va.

Before Spring was appointed CEO-elect in early 2023, he spent 33 years at Bloomingdale’s – the final nine years of that tenure as chairman and CEO of the division.

“Bloomingdale’s is coming off of several years of good performance and has the opportunity to capitalize on the disruption in the marketplace,” Springs told investors.

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