Macy’s Increases Store Closures to 65 by 2025

Macy’s has announced that it will now be closing 65 stores by the end of the fiscal year. This marks a greater number of closures than originally planned by the former retail titan. Here’s what we know so far.

Macy’s Store Closures by the End of the Year

Baller Alert reported that the well-known department store chain must contend with changing retail trends and consumer preferences. Originally announcing 50 closures in February, per CBS News, Macy’s now anticipates closing 65 shops by the end of the fiscal year, according to the company’s third-quarter results report.

During an earnings call, Tony Spring, the CEO of Macy’s, acknowledged the revised number and mentioned that the majority of closures would take place after the holidays.

“We now expect to close roughly 65 locations this year, in line with our typical cadence,” he said.

View this post on Instagram

A post shared by Macy's (@macys)

This choice is a component of “A Bold New Chapter,” a larger campaign that Macy’s announced earlier this year. The company’s plan calls for investing in 350 “go-forward” stores while closing 150 “unproductive” outlets, or around 30% of its total locations, by 2026.

“A Bold New Chapter serves as a strong call to action,” Spring said. “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.”

Macy’s pledges to put an emphasis on providing its devoted customers with value and engaging in-store experiences when the closures take place. Concerns regarding employment losses and the effect on communities that depend on these establishments have been raised by the announcement, though.

Macy’s Has Upped Its Total Store Closure Count Again

Back in September, the retailer revealed that it would be closing 55 stores by the end of 2024.

As part of its three-year plan to eliminate 150 outlets, the firm had originally planned to close 50 underperforming stores by the end of the year. It upped that number to 55 in September and now 65 in December.

Although the closing stores’ locations have not yet been revealed, there has been speculation that they will include the location in Tampa, Florida’s WestShore Plaza mall, Traverse City, Michigan, and Newington, New Hampshire. According to reports, these stores will close following the winter holidays.

“The biggest things that have gone wrong at Macy’s are the quality of the stores and the product assortment,” GlobalData Retail analyst Neil Saunders said to The Daily Mail. “And so over the years customers have deserted it, sales have tumbled and store productivity has gone down. All the metrics have gone in the wrong direction.”

Following Macy’s announcement that it was redirecting funding to its in-house brands in yet another attempt to turn the proverbial ship around, news of these closures broke.

TheStreet claims that as part of its rehabilitation effort, the store has revived or launched several other brands, such as State of Day and On 34th. Before the year ends, it originally intended to introduce a men’s collection and a new children’s brand.

However, Macy’s major rebranding is more than just reviving familiar names. According to reports, the mall mainstay is focusing more on its popular high-margin luxury goods in an effort to draw in clients who have a little more money to spend.

The business has stated that it will concentrate its efforts on designer fragrances, which are more reasonably priced than luxury handbags, for instance, but still feature well-known labels like Dior and Chanel.

High-end scents from companies like Tom Ford, Creed, and Cartier are already available in some Macy’s locations. However, as part of its plan to increase the number of designer perfumes available, the firm announced that by the end of 2024, it will have 42 stores selling its high-end cosmetics with an emphasis on fragrances.