Title: Macy's Announces Closure of 66 Stores: Check if Yours is Affected
Last year, Macy's revealed its plan to close 150 underperforming stores by 2026, shrinking its presence to roughly 350 locations. In a press release, CEO Tony Spring acknowledged that closing stores is never easy, but these locations are "underproductive" for the company's strategic shift towards catering to wealthier shoppers via high-end brands like Bloomingdale's and Bluemercury.
The retail industry has seen a divide in the past few decades, with lower-end stores focusing on cost savings (like Walmart) thriving, while luxury brands have also remained successful as affluent shoppers maintain their spending despite higher prices. Macy's, unfortunately, has been caught in the middle. Spring explained that the closures allow the company to prioritize its resources and invest in its go-forward stores where customers are enjoying better product offerings and improved services.
The company aims to fend off activist investors and boost sagging sales and stock. However, Macy's shares have dipped about 15% since the announcement of this initiative. Activist investors argue that Macy's property values surpass its own and that its struggles have made the stock unattractive, reducing its worth below the sum of its parts. The company, on the other hand, maintains that it is on a path to return to sustainable growth.
Sixty-six locations are affected by the closures. These include flagship stores, the furniture-focused spinoff, and Macy's budget-friendly rival, Backstage. Liquidation sales are starting in various locations, with some stores already closed.
The 66 stores slated for closure are situated in various states:
- Arizona (Mesa: 6535 E. Southern Ave. in Superstition Springs Center)
- California (Chula Vista: 2015 Birch Rd. in Otay Ranch Town Center, Citrus Heights: 6000 Sunrise Mall, Corte Madera: 1400 Redwood Highway, Los Angeles: 750 W 7th St., Newark: 200 Newpark Mall, San Diego: 1555 Camino De La Reina in Mission Valley Home, San Mateo: 2838 South El Camino, Sacramento: 414 K St., Westminster: 300 Westminster Mall)
- Colorado (Centennial: 6797 South Vine St., Denver: 8298 E. Northfield Blvd. in the Shops at Northfield)
- Florida (Altamonte: 820 West Town Parkway, Boca Raton: 9339 Glades Rd., Boynton Beach: 801 N. Congress Ave., Fort Lauderdale: 4501 N. Federal Highway, Pembroke Pines: 13640 Pines Blvd., Sarasota: 3501 S, Tamiami Trail in Westfield Siesta Key, Miami: 13251 South Dixie Highway, Tampa: 298 Westshore Plaza in West Shore Plaza)
(Watch out for the next part, as we delve deeper into the affected locations across the U.S.)
The business decision to close underperforming stores by Macy's will enable the company to redirect resources towards its successful outlets, offering better products and services to customers. Despite the closure of 66 stores, including flagships and budget-friendly rival Backstage, Macy's is committed to countering declining sales and investor criticism, aiming for sustainable growth.
