Macy’s is set to close additional stores by the end of January, with plans to shut down 65 locations identified as “underperforming.” This marks an increase from the previous estimate of 50 closures. Scripps News has reached out to Macy’s for details on the specific locations affected and is currently awaiting a response.
Earlier this year, Macy’s announced a broader strategy that included the closure of 150 stores over the next three years, which translates to a 3.5% reduction in its workforce, impacting around 2,350 employees. The closures are part of what the retailer describes as a “bold new chapter” in response to declining sales.
Despite the store closures, Macy’s intends to pivot towards expanding its small-format retail stores, which are significantly smaller in size compared to traditional department stores. The company also plans to modernize 350 remaining locations across the nation.
In recent financial updates, Macy’s reported quarterly sales of $4.74 billion in November, slightly exceeding the expected projection of $4.72 billion, indicating a potential stabilization in some areas of its business.
This strategic shift towards smaller stores and modernization efforts could present new opportunities for Macy’s to adapt to changing consumer preferences while streamlining operations.
Overall, while the closures may seem concerning at first glance, they reflect a proactive approach by Macy’s to reposition itself in a challenging retail landscape and embrace innovative retail formats for a sustainable future.