Macy’s bosses are moving forward with store closures as they look to reinvent the 166-year-old retailer.
The troubled department store chain announced in February that it would close 150 over the next three years, including 55 by the end of 2024.
It will be left with just 350 stores, a far cry from the peak of around 1,100 in 2008. It has been in steady decline since.
Macy’s has not yet announced exactly which stores will be affected, but employees are speculating whether their location could be in danger.
The latest to emerge is the Kingston Collection shopping center in Massachusetts, but it will remain open for locals to shop there during the holidays and will close in early 2025.
Macy’s has increased the number of stores it will close this year as it tries to revamp its dwindling business (Pictured: flagship store in Manhattan)
It originally opened as Filene’s in 1989, but became Macy’s during a wave of retail mergers in the mid-2000s.
For decades, the store has been a cornerstone of the mall, serving hundreds of thousands of shoppers and contributing to the mall’s identity.
Bosses said the closure relates to their strategy to return to profitable growth.
“As part of our new strategy to return Macy’s to profitable growth and improve the customer experience, Macy’s has sold its Kingston Collection store in Kingston, Massachusetts,” a spokesperson said. he told The Patriot Ledger.
Locals expressed their sadness at the news.
‘It’s sad. “I grew up here and I’ve shopped here,” said one shopper. he told WBZ radio.
Another said: “I’m so disappointed, I love it.” I’m wearing these clothes from Macy’s.
Like many department stores, Macy’s has been suffering from declining sales amid the stratospheric rise of its online rivals and the demise of America’s suburban shopping centers.
Earlier this year, Tony Spring was named the new CEO and announced a major turnaround effort.
This includes closing more than a third of stores (there will be just 350 left nationwide by 2026) and focusing more on its luxury offerings, Bloomingdale’s and Bluemercury.
It also closed five more locations in January and laid off more than 2,000 workers.
Macy’s reached its peak number of stores in 2008, when it operated approximately 1,100 stores in the United States.
This included a combination of full-line department stores, furniture galleries and other formats.
Retail expert Neil Saunders said some locations have been “left to rot” and have shown signs of neglect.
“What has gone wrong most at Macy’s is the quality of the stores and the variety of products,” Saunders, an analyst at GlobalData Retail, told DailyMail.com earlier this year.
‘And so, over the years, customers have abandoned it, sales have fallen and store productivity has declined. “All the metrics have been going in the wrong direction.”
This comes after the company abandoned talks in July with two investors trying to buy the chain.
Retail analyst Neil Saunders said Macy’s stores had been “left to rot” as investment had dried up and quality had declined.
Macy’s said it is focusing more on its upscale Bloomingdale’s and Bluemercury offerings.
Department stores have fallen from 14.5 percent of total U.S. retail sales in 1985 to just 2.6 percent in 2023.
Macy’s opened its flagship store in Herald Square, Manhattan, in 1902.
Macy’s confident in turnaround strategy led by new CEO Tony Spring
Macy’s is one of many retailers closing stores this year as the ongoing “retail apocalypse” forces brick-and-mortar stores to deal with increased theft and shrinking profit margins.
There were almost 2,600 store closures in the first four months of 2024. If this trend continues, almost 8,000 will have been lost by the end of the year.
News broke Tuesday that Walgreens will close more than 1,200 stores in an attempt to turn around the struggling chain.
And last week, it reported that Big Lots will close 500 stores in several states as its financial problems worsen.
Dollar stores have also been hit hard, with 99 Cents Only announcing in April that it would close its 371 locations in California, Texas, Arizona and Nevada.
Family Dollar has said it will close 1,000 stores under its own brand and that of sister company Dollar Tree over the next three years.
Badcock Home Furniture & More said in late July that it will close its 380 stores across the South after filing for bankruptcy earlier this year.