In a surprising turn of events, the popular retail brand Macy’s has announced that it will be closing 65 stores in the coming weeks. The 1858-founded store chain is particularly known for harboring a wide collection of fashion, beauty, and home essentials. Despite boasting a rich heritage, the organization has chosen to cut down on its physical locations. But, what has prompted such a decision from the company’s top executives?
Here’s everything you need to know regarding the upcoming closing of Macy’s stores.
Macy’s closing 65 stores by end of January 2025
The department store chain Macy’s will be shutting down as many as 65 locations by the end of January 2025. Notably, the company’s original plan was to carry out the same action for around 50 stores.
Macy’s CEO Tony Spring shed more light on why his team will be closing down more stores than their initial estimate in a statement on Thursday. Spring explained that the decision was taken as the “deal-making environment remains favorable” at the moment. Additionally, the shops that will cease to exist come 2025 have all underperformed on the sales front.
This updated step falls under Macy’s program to close a total of 150 stores in the coming time. The corporation is among many retail giants that have found it difficult to adapt to the evolving shopping habits of customers, as well as the rise of online competitors.
Macy’s CFO and COO Adrian Mitchell declared the net sales for the third quarter to be $4.7 billion on Thursday. This return amounts to a decline of 2.4% from last year’s numbers. (via Fast Company)
Presently, the company operates 479 retail stores, along with 24 small format stores. Macy’s also deals in Bloomingdales and Bluemercury cosmetics properties. Of the aforementioned shops, a total of 38 stores are located in New York. At the time of writing, it is unknown as to which Macy’s stores will be closed after the holiday season.
