The luxury retail landscape is in turmoil, and the recent bankruptcy of Saks Global has sent shockwaves through the industry. But could this be the turning point that Macy’s has been waiting for? While the collapse of iconic brands like Barneys, Lord & Taylor, and Neiman Marcus paints a grim picture, Macy’s and its upscale subsidiary, Bloomingdale’s, seem to be charting a different course. And here’s the surprising twist: they’re doing it by focusing on something so basic, it’s almost revolutionary—the fundamentals of good business.
But here’s where it gets controversial: In an era dominated by e-commerce giants and shifting consumer habits, can sticking to the basics really save a department store? Macy’s is betting on it. While Saks struggled with vendor payments and ultimately filed for bankruptcy, Bloomingdale’s has quietly been gaining ground, capturing some of its rival’s market share. Retail analyst Neil Saunders notes that Bloomingdale’s is well-positioned to capitalize further, especially if Saks’ stores close or face inventory shortages during the bankruptcy process.
This momentum builds on Macy’s own resilience. The company barely survived the pandemic-induced closures that crushed demand for high-end apparel and pushed consumers further into the arms of Amazon and other online retailers. Since then, Macy’s has twice fended off private equity firms eager to capitalize on its real estate assets rather than its long-term retail potential. By rejecting these buyout offers, Macy’s made a bold statement: it believes in its future as a retailer, not just a property portfolio. This decision stands in stark contrast to the fate of retailers like Sears, Lord & Taylor, and Toys ‘R’ Us, which fell victim to the private equity treatment.
Instead of chasing trends, Macy’s doubled down on the basics. Nearly two years ago, it appointed Tony Spring, a Bloomingdale’s veteran, as CEO to lead a turnaround focused on—wait for it—customer experience. Spring’s strategy? Clean up the stores, fix broken dressing room locks, and ensure there are actual staff members to assist shoppers. It sounds simple, but in an age of self-checkout and online shopping, these fundamentals are increasingly rare.
The results? Macy’s has closed over 100 underperforming stores and plans to shutter 14 more this year. While it’s still early, Spring’s efforts are paying off. In September, Macy’s reported its first quarterly sales growth in years, albeit a modest 1% year-over-year increase, but it exceeded Wall Street’s expectations and briefly boosted its stock by 20%. By December, the retailer again beat forecasts, posting its strongest same-store sales growth in over three years.
And this is the part most people miss: Macy’s isn’t just surviving; it’s rethinking the department store model for the modern era. While online retail isn’t going away, and the luxury market faces growing disillusionment over higher prices and lower quality, Macy’s is focusing on what it can control—delivering a better in-store experience. The booming secondhand luxury market and the rise of direct-to-consumer brands on platforms like Instagram highlight the challenges, but Macy’s is betting that its commitment to fundamentals will set it apart.
Analysts like Saunders agree that this approach is Macy’s best hope—and perhaps the industry’s. “The bankruptcy of Saks Global underscores the importance of focusing on the customer and retail fundamentals,” Saunders said. “Tony Spring and his team are reaping the rewards of this strategy, and Saks’ downfall will only strengthen their resolve to double down on these plans.”
So, is Macy’s the exception to the rule, or the blueprint for the future of department stores? What do you think? As the retail landscape continues to evolve, Macy’s story serves as a fascinating case study in resilience and reinvention. Will its focus on fundamentals be enough to thrive in an increasingly digital world? Let us know your thoughts in the comments below.
