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Macy’s Seeks Loyalty Retention

Apparel Icon Shutting Stores, Hopes to Keep Customers on the Digital Side

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Macy's is intensifying its focus on digital strategies to maintain customer engagement amid plans to close approximately 150 stores by 2027.

The retail giant is leveraging digital communication to retain customers who will lose access to their local stores, aiming to capture demand through neighboring locations and digital outreach. This shift comes as consumer shopping habits increasingly blend digital and physical experiences, with a notable portion of shoppers preferring an omnichannel approach that combines online browsing with in-store purchases.

Macy's is also focusing on enhancing the online shopping experience by streamlining checkout processes and providing personalized recommendations. This effort is part of a broader strategy to boost e-commerce engagement and loyalty, as seamless checkout experiences have been shown to significantly influence customer satisfaction and repeat business.

Further, as part of its adaptation strategy, Macy's plans to expand its luxury subsidiaries, Bloomingdale’s and Bluemercury, recognizing the potential for digital growth in these segments. The retailer is also reinvesting in private-label brands to offer exclusive products that yield higher profit margins, despite discontinuing underperforming labels. This move aligns with consumer trends of trading down to more budget-friendly alternatives without significantly sacrificing quality.

By pivoting towards digital and optimizing its brand portfolio, Macy's aims to navigate the challenges of retail closures and evolve with the changing retail landscape, ensuring long-term growth and customer loyalty.

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