As if this is too emphatic for Macy’s, the company proceeded to close more stores than anyone expected. According to the latest earning reports from Macy’s, about 65 locations will close this year, which is an increase from February’s 50, which were the initial orders to close them down. All of these are leading to the concerted plan of closing 150 stores until 2026, equivalent to 30% of Macy’s stores all over the country.
The earnings call for the third quarter was led by CEO Tony Spring who said, “Now we are expecting to close roughly 65 locations this year,”. He also highlighted that most of these closures would occur after the holiday shopping period as had been in the past.
The plan is to develop; a bold new chapter
In February, Macy’s launched a long-term plan called A Bold New Chapter. The initiative aims to reimagine the company’s footprint and strengthen its competitiveness in a highly dynamic retail environment. It involves investments in 350 profitable ‘go-forward’ stores that align with changing consumer behaviors, and flexible towards shifting behaviors.
“‘A Bold New Chapter’ is a strong call to action,” Spring said in a February statement. “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.”
What causes store closures?
The decision to shutter about a third of Macy’s stores has come with low customer traffic and plummeting sales, not to mention cut-throat competition from e-commerce retailers. Macy’s intends to shut low-performing stores to focus on better-performing outlets and improve its digital-focused strategy.
This exercise serves the broader goal of modernizing operations and improving the in-store experience by providing newer inventory systems and better customer service as well as more welcoming store layouts.
Which cities will be affected?
While Macy’s does not release a full list of the 150 locations to be shuttered, there are many sites already identified in California, Florida, Illinois, New York, and some in Texas, covering suburban mall locations and downtown center stores. All stores involved will gradually be shut at the end of 2026, barring a few at which most closures are planned to move after each year’s peak holiday-shopping season.
To see if their city is on that list, customers should visit the Macy’s website or monitor their local news for the newest updates. Actually, the releases have been happening in a rolling manner.
Expectations:
Macy’s is doing a makeover on its brick and mortar strategy, but the company will uphold the concept of the traditional customer as strongly as ever, putting money on technological and merchandising improvements for simpler and even more wonderful shopping experiences. Close to a hundred stores will be shut down within 2 years; however, the company believes that now with the revamped focus on the select stores, they would be able to achieve long-term growth.
