Macy’s has been a part of American culture for more than 165 years. However, the brick-and-mortar stores are disappearing. The company announced it is closing 150 of its namesake stores over the next three years, according to USA Today.
Macy’s is one of the most notable U.S. department store, but that doesn’t make it exempt from the ongoing struggles of retail shops, especially bigger department stores.
Axios reported Macy’s is turning its focus toward more “luxury sales” under the leadership of a new CEO who took over in early February.
Macy’s may be closing nearly a third of its namesake stores, but the company said it’s opening at least 30 new Bluemercury beauty stores and 15 new Bloomingdale’s locations, according to Axios.
Some critics said that Macy’s leadership should have made changes sooner.
Neil Saunders of GlobalData told CNN that the department store “stopped listening to customers” and contends that the financial problems the store is now facing are because of a “failure to evolve.”
In fact, Macy’s struggles to keep customers from competitors are why some investors are reportedly pressuring the company to sell and go private. In January, Macy’s rejected a takeover bid by an investment group known as Arkhouse Management, as reported by The New York Times.
When it comes to closures, Macy’s has yet to identify the stores that will be shuttered but said that the locations chosen are “underproductive.” The company said the first 50 stores will be closed this time next year.
CNN reported that retail data shows when it comes to big box stores, customers are shifting to the likes of Walmart, which offers lower prices and more of a one-stop shop with groceries. However, all big box retailers are facing the exodus of in-person shopping.
When physical stores closed in 2020 due to the COVID-19 pandemic, online sales soared. Pew Research found that e-commerce sales totaled more than $205 billion, up 55% from the year prior, and while some shoppers have returned to in-person stores, online retail sales remain well above pre-pandemic levels. U.S. Census Bureau data reveals that in 2023, stores with an online-only presence took the bulk of all retail e-commerce sales.
Malls have been struggling since well before the pandemic. In 2019, 9,300 stores in malls closed throughout the U.S., according to a Business Insider analysis.
A Capitol One report said that malls used to number 25,000 in the 1980s. The Wall Street Journal reveals that just 700 remained at the end of 2022, and retail advisory firm SiteWorks told The Wall Street Journal that as few as 150 may be left nationwide by 2032.
However, SiteWorks’ president did say that Macy’s may be among the survivors, claiming only those malls with the most updated infrastructure, best fashion, and luxury retailers will remain.
