• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
RetailCorporate turnaround

Macy’s is adding a touch of luxury to its ‘platinum’ stores

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
May 14, 2015, 8:52 AM ET
US-ARTS-ARCHITECTURE-NEW YORK-SKYLINE
Macy's flagship store on West 34th Street in midtown Manhattan in this view from the Empire State Building February 14, 2014 in New York. AFP PHOTO/Stan HONDA (Photo credit should read STAN HONDA/AFP/Getty Images)Photograph by Stan Honda — AFP/Getty Images

Middle of the road isn’t such a great place to be if you’re a retailer. Just ask Macy’s (M).

Shoppers are now either gravitating toward the deeply-discounted items found at T.J. Maxx (TJX) and outlet stores such as Nordstrom Rack, or, if they have the means, they’re focusing on high-end stores such as Neiman Marcus and Macy’s sister chain, Bloomingdale’s.

That bifurcation in the retail industry is leaving many mid-tier stores struggling to find growth: witness Macy’s (M) anemic first-quarter results, which included a slight but unexpected decline in sales. The long-time department store leader’s performance contrasts with growth last quarter at downmarket rivals J.C. Penney (JCP) and Kohl’s (KSS), as well as at upmarket competitor Nordstrom (JWN).

To remedy that sales decline, Macy’s is developing strategies that zero in on its top 150 stores, or about 20% of its fleet, particularly its very best 30 stores, which it calls its “platinum doors.” The goal is simple: getting a sales lift in time for the crucial holiday season by adding a lot of higher-end merchandise, more staff, new technology, and a redesign.

The retailer has already done this to a large extent at a few of its most important stores. Its flagship store in Manhattan’s Herald Square is nearing the end of a multi-year, $400 million renovation, and is now in essence partly a luxury department store, housing brands such as Louis Vuitton and Longchamp, which few Macy’s stores carry, and a Coach (COH) boutique designed by Dutch architect Rem Koolhaas. The Macy’s store in San Francisco’s Union Square is also a beauty and could easily be mistaken for a luxury department store. Macy’s has also bought the upscale Bluemercury beauty and spa company, which it plans to expand.

“We believe there is opportunity to elevate these stores further and accelerate their growth,” Macy’s Chief Financial Officer Karen Hoguet told Wall Street analysts this week. “Hopefully, we will begin to see the benefit this fall, particularly in the fourth quarter.”

The 150 stores were chosen based on their sales growth, the state of economy in those markets, customer service scores at those stores, and their profitability.

More specifically, Macy’s plans to add higher-end merchandise to those 150 standout stores. At the 30 platinum stores, Macy’s may remove some clearance items so it can offer more new merchandise. (The retailer is launching a new outlet chain this year called Backstage that will give it a venue to clear much such inventory.) The best stores will also get more inventory of hot items, redesigns, more staffing, and new technology.

Unfortunately for Macy’s, many of its stores are old and located in malls that are struggling, partly because of store closings by JCPenney and Sears (SHLD) in recent years. By contrast, the Macy’s stores at booming malls — such as Long Island’s Roosevelt Field — are thriving. So such stores are about to get a lot more attention from the company.

“If you think about it, the top malls in the country are doing extraordinarily well, as are we,” Hoguet said. “But we think we can actually push that growth further.”
[fortune-brightcove videoid=4232538485001]

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Tomatoes become the latest symbol of the affordability crisis as prices rose over 40% from last year
EconomyGrocery
Tomatoes become the latest symbol of the affordability crisis as prices rose over 40% from last year
By The Associated Press and Matt SedenskyMay 29, 2026
19 hours ago
A barista wearing a green apron stands behind the bar and pours a drink into a cup
RetailStarbucks
Starbucks quietly retired its AI agent just months after deployment after it miscounted coffee shop inventories and slowed down baristas
By Sasha RogelbergMay 28, 2026
1 day ago
lee
Commentarystock exchanges
Texas Stock Exchange CEO: exchanges can build on Exxon’s retail model to rein in proxy advisors
By James H. LeeMay 28, 2026
2 days ago
Independent book stores are growing as people look for community in local spaces
Retailbooks
Independent book stores are growing as people look for community in local spaces
By The Associated Press and Hillel ItalieMay 28, 2026
2 days ago
Robinhood launches agentic trading, announces credit card for AI agents with 3% cash back
BankingRobinhood
Robinhood launches agentic trading, announces credit card for AI agents with 3% cash back
By Jeff John RobertsMay 27, 2026
3 days ago
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
MagazineSam's Club
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
3 days ago

Most Popular

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
Magazine
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
3 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
9 days ago
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
Success
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
By Emma BurleighMay 28, 2026
2 days ago
UBS says Ron DeSantis has a problem with his plan to help 92% of homeowners save on property taxes: His own state's data
Personal Finance
UBS says Ron DeSantis has a problem with his plan to help 92% of homeowners save on property taxes: His own state's data
By Nick LichtenbergMay 28, 2026
2 days ago
Current price of oil as of May 28, 2026
Personal Finance
Current price of oil as of May 28, 2026
By Joseph HostetlerMay 28, 2026
2 days ago
Researchers let AI models run a simulated society. Claude was the safest—and Grok committed 180 crimes and went extinct within 4 days
AI
Researchers let AI models run a simulated society. Claude was the safest—and Grok committed 180 crimes and went extinct within 4 days
By Jake AngeloMay 28, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.