Macy’s To Close 45 Additional Stores

Macy's To Close 45 Stores

As part of a three-year roadmap to close stores, Macy’s reportedly told staffers at roughly 45 locations that they will shutter by mid-2021. The department store retailer intends to close 125 stores by 2023, as unveiled in the past, CNBC reported.

“As previously announced, Macy’s is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls,” a representative said in a statement, as per CNBC.

CNBC could not immediately receive a listing of the 45 Macy’s locations set to shutter. Macy’s runs 544 of its eponymous department stores in addition to 166 Bluemercury stores, 19 Bloomingdale’s outlets and 34 Bloomingdale’s stores.

In the past, Macy’s CEO Jeff Gennette has said the firm was still wagering on the best malls in the U.S., although it would aim to expand off-mall going forward.

Approximately 1,000 malls currently operate in the country, CNBC reported, citing Green Street. The lion’s share of them are categorized as D-, C- and B-rated malls that take in not as many sales for each square foot as an A shopping center.

The challenges facing the department store retailer’s pandemic-driven downturn recovery have been well-documented. Declining foot traffic at malls and general trouble in the department store category are only two of them, and the effects were shown in its Q3 earnings announcement in November.

The key number displayed a comp-store decline of 20.2 percent in contrast to 2019 and a digital sales rise of only 27 percent. Gennette said during the firm’s earnings call that the retailer was cautiously optimistic that it could build on both metrics for the Q4 holiday season.

“We recently completed a significant upgrade to our curbside offering, which includes an improved digital checkout experience and a new app to quickly process curbside orders,” the executive said. “Customers are responding well to the enhanced experience. Digital continues to thrive, and is a healthy component of our business.”