What Does Macy’s Announcement Mean for Providence Place Mall?
GoLocalProv Business Team
What Does Macy’s Announcement Mean for Providence Place Mall?
It was the return of retail to America’s cities, and Providence Place was upscale and anchored with top-tier retailers like Nordstrom, Lord & Taylor, and Filene’s.
It was big news.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTToday, Providence Place has only two anchor locations currently filled by Macy’s and Pennsylvania discount store Boscov’s.
And, on Tuesday, Macy’s announced a major corporate pivot and massive store closings over the next three years.
150 Store Closing
According to Macy’s announcement, the retailer is "closing approximately 150 underproductive locations, including approximately 50 by the end of the fiscal year, and prioritizing investment in approximately 350 go-forward locations and the continued expansion of small-format stores.”
The company did not identify which stores would close over the next three years. Besides the anchor store in Providence Place, there is a second Macy’s store located in Rhode Island at Warwick Mall.
The announcement potentially puts Providence Place in the crosshairs. If the Providence Place location survives the store closures and the company is successful at its strategic move to a higher luxury position — the store could be a destination and help drive the mall's resurgence.
But, if the Providence Place location does not survive, the mall would be down to one anchor — a discount store.
Presently, Providence Place has few luxury stores — Tiffany, the Apple store and little else.
Macy’s, besides announcing the store closing, outlined a corporate pivot to a luxury position, with fewer stores and a promise of higher quality brands and higher prices and margins for the retailer.
“A 'Bold New Chapter' serves as a strong call to action. It challenges the status quo to create a more modern Macy’s, Inc. We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said Tony Spring, chief executive officer of Macy’s. “Our teams are energized by the work ahead as we accelerate our path to market share gains, sustainable, profitable growth and value creation for our shareholders.”
The Macy’s announcement went on to say:
Accelerate Luxury Growth: 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. As part of the strategy, approximately 15 Bloomingdale’s nameplate stores and at least 30 new Bluemercury stores, along with roughly 30 Bluemercury remodels are anticipated to be opened in new and existing markets over the next three years.
The company also announced its financial performance for 2023 on Tuesday and those numbers were rough:
- Digital sales decreased 7% versus 2022.
- Brick-and-mortar sales decreased 5% versus 2022.