Twitter, JJY Media de Pexels Macy's Confirms It! Closing More Than 60 Stores in 22 States
The chain is closing the shutters of dozens of its establishments in the United States as part of a restructuring plan.
Macy's, one of the largest department store chains in the United States, faces a new chapter in its history. In an attempt to stay afloat, the company has decided to close 66 stores in various cities across the country.
A Strategic Plan to Survive in a Competitive Market
The company previously announced its intention to reduce its commercial presence. In 2023, it communicated that it would close 150 underperforming stores before 2026. Now, it has revealed which will be the first 66 to shut down.
Tony Spring, CEO of Macy's, explained that these stores do not fit the company's new strategy. "Closing any store is never easy," he admitted in a statement. However, he assured that these closures will allow strengthening other business areas, focusing on Bloomingdale's and Bluemercury, its high-end brands.
Macy's Challenge in a Divided Market
Retail in the United States has changed in recent decades. Low-cost stores, like Walmart, have grown steadily. At the same time, top-level brands have maintained a loyal clientele, regardless of inflation.
Macy's, meanwhile, finds itself caught in the middle. It doesn't compete on low prices, nor on exclusivity. This has led to a decline in its sales and stock value.
Spring detailed the objective of the new restructuring plan. "We are closing unproductive Macy's stores to allow us to focus our resources and prioritize investments in our future stores, where customers are already responding positively."
Investor Pressure and Stock Decline
The store closures also aim to appease investors. In the past year, Macy's shares have fallen by 15%, which has raised concerns among shareholders. Some activist investors have demanded radical changes.
They argue that Macy's real estate is worth more than the company itself and that the losses have made its shares lose appeal. Macy's has rejected this idea. They assure that they are on the path to regaining stability and returning to sustainable growth.
Closing Stores of Different Formats
The closures include locations from different segments of the brand. Some are traditional Macy's stores, while others belong to its furniture division or Backstage, its attempt to compete with T.J. Maxx and Marshalls.
Product liquidations will begin in the coming days. In some cases, the stores have already closed their doors. The places where more stores will close are New York, Florida, California, and Texas.
Macy's future will depend on the effectiveness of this plan. The company bets on attracting high-income customers and strengthening its premium brands. However, competition remains fierce and retail continues to evolve.
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