Macy’s Inc. expects to close 45 stores in 2021, according to a report by Reuters. The department store chain reportedly announced the down-size as part of its effort to lower the number of stores and focus on its most productive locations. The coronavirus pandemic has only worsened things for the struggling retail industry.
“Macy’s is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls,” read a statement from Macy’s emailed to journalists on Tuesday. “To that end, we announced several store closures today that align to the guidance we provided in February 2020.” The company announced in early 2020 — before COVID-19 broke out — that it would be closing 125 of its least productive stores in the coming years to account for the new trends among shoppers. The company reportedly closed about 30 stores in 2020; it aims to close even more by the end of this year.
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“These closures bring us closer to achieving the right mix of mall-based stores,” the statement concluded. Macy’s Inc. operates over 750 stores, including locations named Bloomingdale’s and Bluemercury. The company said that it has already determined which stores will be closing this year and will post a full list of them on its website on Wednesday. It is not clear if employees have been informed ahead of time.
Macy’s is struggling with increased interest in online shopping and the dropping foot traffic at shopping malls in general. Like other department stores in the same position, Macy’s is now prioritizing its stores that are not ensconced in large malls. Some chains are even trying to open new shops in better locations, Reuters reports, but so far Macy’s has made no such moves.
Macy’s mass closure plan is scheduled for three years in total, with a growing number of closures each year. Presumably, 2022 will see at least 50 stores closing if Macy’s intends to reach its goal of 125 closures in total by 2023.
According to a CNBC report, some Macy’s locations have already begun liquidation sales, suggesting that they are among the 45 imminent store closures. The locations of those stores have not been made public. The outlet also reported that only about 1,000 shopping malls are operating in the U.S. today as the interest in retail shopping declines rapidly. Those malls vary drastically in their profitability, explaining why big companies like Macy’s Inc. are looking to escape the mall business.
