Macy's is closing 150 stores nationwide as it seeks 'bold new chapter' with greater focus on luxury

Macy's plans to close approximately 150 stores nationwide as part of a massive reorganization that will see the retailer pivot to a greater focus on luxury sales.

The clothing chain announced Tuesday an initiative it's calling a "bold new chapter" that will involve shuttering "underproductive" locations, including approximately 50 by the end of the company's current fiscal year.

The locations of the closures were not immediately available, and a Macy's spokesperson did not immediately respond to a request for comment.

The closures will leave approximately 350 locations, including small-format stores, as well as Bloomingdale's and Bluemercury beauty and skincare locations.

It is those latter brands that the company sees as its future: It said it plans to take advantage of its leadership position in the luxury market, where it said Bloomingdale’s and Bluemercury have been "outperformers" within the Macy’s portfolio.

The company plans to build out 15 new Bloomingdale’s stores and at least 30 new Bluemercury stores, along with roughly 30 Bluemercury remodels, over the next three years.

“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” said CEO Tony Spring in a release.

Macy's has been under pressure from investor activists seeking an outright sale of the company due to its decade-long underperformance, with Macy's real estate considered its most valuable asset.

However, Macy's recently rejected a takeover offer, saying it undervalued the firm.

Wall Street's immediate reaction to Tuesday's announcement was negative, with shares trading more than 2% lower in pre-market action.