In a significant development, retail giant Macy’s has announced plans to close 65 stores in the upcoming weeks. Established in 1858, this iconic chain is renowned for its extensive range of fashion, beauty, and home essentials. Despite its storied history, the company has opted to reduce its physical presence. What factors have led to this pivotal decision by the company’s executives?
Here’s what you need to know about the impending closures of Macy’s stores.
Macy’s to close 65 stores by January 2025
Macy’s will be shutting down up to 65 locations by the end of January 2025, surpassing its initial plan to close around 50 stores.
Macy’s CEO explained that the increase in closures results from a “favorable deal-making environment” currently and noted that the stores selected for closure have underperformed in sales.
This action is part of Macy’s broader strategy to close a total of 150 stores in the near future. The company, like many retail leaders, is grappling with the changing shopping habits of consumers and the growing challenge from online competitors.
Macy’s CFO reported a net sales figure of $4.7 billion for the third quarter, reflecting a decrease of 2.4% compared to the previous year.
Currently, Macy’s operates 479 retail locations and 24 smaller format stores, including Bloomingdale’s and Bluemercury cosmetics. Notably, 38 of these stores are situated in New York. The specific locations targeted for closure post-holiday season remain unconfirmed.
