Macy’s has been an important part of American retail history, but it has had a lot of problems lately because of changes in customer habits, the rise of online shopping, and rising economic pressures. Macy’s has decided to close 150 shops over the next few years as a way to deal with the current economic situation.
Rowland Hussey Macy opened Macy’s in the heart of New York City in 1858 as a small dry goods shop. It quickly grew into a huge retail giant. By the early 1900s, Macy’s had become a household name thanks to its innovative ideas like fixed prices and the brave decision to print real prices in newspapers.
Its famous main store opened in 1924 in Herald Square, New York City. It is still one of the biggest department stores in the world and is known for having the famous Macy’s Thanksgiving Day Parade.
Leadership Transition at Macy’s
At its peak in the middle of the 2010s, Macy’s had an impressive network of about 850 shops all over the United States. The company’s best years financially were between 2014 and 2015, when it made an amazing $28 billion a year. Although it was at first successful, it soon faced tough competition from huge online stores like Amazon, which began to cut into its market share.
The CEO of Macy’s right now, Tony Spring, said that some shops aren’t doing well, but they are still “valuable real estate assets.” He said that there was a lot of interest in these sites. Spring hasn’t said what exactly they plan to do with these sites in the future, but it’s likely that Macy’s will decide to keep these properties.
Tony Spring has worked for Macy’s for a long time and was CEO of Bloomingdale’s before becoming CEO-elect in March 2023. His appointment comes at a crucial time for Macy’s, as the company goes through big changes like closing stores and reorganising its departments.
Why is Macy’s Closing its Stores?
Apple has decided to close 150 shops as part of a larger plan to adapt to the constantly changing retail environment. There are a few main reasons for these store closings, but the main one is that more and more people are shopping online.
The rise of online shopping has made people less likely to walk into stores. Macy’s has had a hard time keeping up with online shopping giants like Amazon in this new environment. People today spend less time in department stores and more time at shops that sell items for less than they cost. There has also been a clear change in how people act, with events becoming more important than products.
Macy’s Strategic Store Categories
Macy’s has put its shops into two groups: “go-forward” and “non-go-forward.” The “non-go-forward” stores are places that aren’t doing well and are being shut down to help the company as a whole. The board of Macy’s has said that even though these stores are in good locations, they haven’t been performing as well as other shops.
Cost-Cutting and Investment Realignment
These stores are closing as part of a bigger plan to cut costs so that the company can put its money into places that make more money and grow its online business. This move is meant to set Macy’s up for better performance in a retail world that is always changing.
Has Macy’s Announced Which Stores Are Closing?
As of right now, Macy’s hasn’t released an official list of the shops that will be closing. The business has said, though, that 55 of the 150 planned closings will happen by December 2024. The rest of the stores will likely close in the years that follow. Possible sites have been guessed at by employees and retail analysts, but the official list is still secret and hasn’t been given to the press.
Planned Store Closures by December 2024
By the end of 2024, Macy’s plans to close 55 shops. A bigger plan is to close 150 stores by 2026, and this is part of that. Even though Macy’s is shrinking, it will still have 519 shops across the U.S., focussing on the ones that make the most money. Macy’s also owns more than 150 Bluemercury stores and 56 Bloomingdale’s stores. These stores will stay open while the business focusses on a more profitable and sustainable future.
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