Due to the consistent fumbling with its business model, Macy’s, the most famous retailer in American history, is going to shut down even more of its operational branches. At first, it was going to lay off 150 unproductive retail stores in 3 years, and 50 of them have been proposed for closure within this year. Afresh, now it is perceived that 55 stores will be closed before 2025 to reduce expenditures and reestablish viability for the irrelevant merchandise.
An extensive list from the organization regarding which outlets will be closed by them has not yet been presented, so many employees are unsure if their store will be one of these.
Struggling to Compete with Online Retailers
Just like several typical traditional department stores, Macy’s has suffered devastatingly from the rise of internet shopping. Sales for Macy’s have diminished extensively due to increased rivalry from e-commerce firms and vanishing suburban shopping malls. Consequently, Marriott Hotel’s first-choice executives had to make very tough choices about its future.
The latest earnings call held by top management of the company was graced by its chief financial officer, Adrian Mitchell, who expressed contentment with the current strategy of selling off retail outlets to property owners and developers. “We’re very pleased with the value we’re able to unlock in those deals and those transactions,” said Mitchell.
Focus on luxury brands and streamlining operations
Macy’s is also in a state of transition. Earlier this year, the company appointed Tony Spring as its new CEO. Spring announced a major turnaround strategy, including a significant reduction in the number of Macy’s stores. In 2026, there will be 350 Macy’s stores left in the U.S., which will give more prominence to its luxury brands, Bloomingdale’s and Bluemercury.
Macy’s closed five additional locations and laid off over 2,000 workers. However, the company is still not performing well even with such moves, and there are plans for even more store closures.
Speculation Grows Over Which Stores Will Close
Even though Macy’s has not specified the particular places to be closed down, the employees and people from within the industry have raised speculations. There is a thread titled “MacysStores” on Reddit where various workers talk about ideas of how possible store closures are realized. Some of them have hinted that two locations, Newington in New Hampshire, Traverse City in Michigan, and Westshore Plaza Mall in Tampa, Florida, could be shut down after this holiday season.
Retail consultant Neil Saunders, who works with GlobalData Retail, said that many Macy’s stores have been neglected for several years now. Earlier this year, he told the Daily Mail, “Macy’s biggest problems are related to the state of its buildings and merchandise available.” According to him, over time other customers left them; hence, sales fell while store performance decreased; all indicators went in the wrong direction.
Failed Buyout Attempt and Retail Challenges
In January 2024, Macy’s rejected a $6.9 billion buyout proposal from investors Arkhouse Management and Brigade Capital Management, citing concerns about financing and shareholders’ interests.
Macy’s is not alone in facing challenges as one of the biggest retail chains in America. The whole United States is experiencing what some scholars call a “retail apocalypse.” For instance, almost 2,600 shops closed within the first four months of this year alone, and that figure might rise to 8,000 at the end of the year. Several well-known brands like Walmart, Family Dollar, and Best Buy have also made announcements about the closure of numerous stores in 2020, which worsens the situation for this company.
As such, more information regarding specific store closures should be released by Macy’s later this year as it rolls out its plan. Meanwhile, it continues to wrestle with an unpredictable future amid a fast-changing retail environment.
