Is Macy’s going out of business? A new series of Macy’s shop closures begin in the new year. As part of its Polaris transformation plan revealed in 2020, the department store chain declared it would close other stores in 2023.
Customers might need to hunt for Macy’s alternatives or buy online. It’s because the four stores in malls across California, Colorado, Maryland, and Hawaii said to close their doors by January 2023.
Macy’s has no plans to go out of business. But it has been closing its underperforming locations as part of the company’s growth strategy since 2020. Over 125 stores were scheduled to close over the following years.
Overview of Macy
In 1858, Rowland Hussey Macy started the large department store chain known as Macy’s in the United States. Federated acquired the Macy’s chain store chain in 1994. The local name tags were removed once May Department Stores Company was acquired in 2005. By 2006, Macy’s and Bloomingdale’s had taken their place worldwide. Ultimately, Macy’s, Inc. replaced Federated as the company name in 2007. According to retail sales, Macy’s was the US’s biggest chain of department stores as of 2015.
As of February 20, 2023, there are 508 Macy’s retail locations in the country. California, which has 90 retail sites—or nearly 18% of all Macy’s shops nationwide—is the state that has the most significant number of Macy’s stores.
2020 saw the closure of Macy’s headquarters in Cincinnati. Also, the merging of all headquarters functions in New York City took place. In August 2021, Macy’s announced a partnership with Toys “R” Us to operate toy stores in Macy’s stores beginning in 2022. Macy’s said in November 2021 that they will start a free education course and raise their corporate basic pay to $15 per hour. Macy’s said in February 2023 that it would stop selling leather items produced from exotic skins, like those from reptiles or ostriches.
Is Macy’s closing all locations?
In 2023, Macy’s will close a second round of locations. During the first quarter, Macy’s expects to shutter four locations nationwide. Starting in 2023, businesses at malls in California, Colorado, Hawaii, and Maryland will hold clearance discounts that last for eight to twelve weeks. Workers at the affected stores will be given opportunities at nearby stores or receive layoff payments. This is according to a Macy’s representative.
The corporation revealed a three-year reorganization plan for 2020, which includes the closures. This was done to “lower expenses, pull teams closer together, and decrease duplicate efforts,” this was done. Macy’s CEO Jeff Gennette said at the time that the company would close 125 locations and cut thousands of jobs.
In 2020, 2021, and 2022, Macy’s discontinued stores included seven locations in January of that past year. The department store business has been trying to establish a Market through Macy’s locations outside suburban shopping centers. They are tiny, trendier theme stores.
The following four stores will close this year, according to Macy’s:
- Los Angeles, California: Baldwin Hills Crenshaw Plaza on Crenshaw Boulevard
- Fort Collins, Colorado: Foothills Mall on Foothills Parkway
- Gaithersburg, Maryland: Lakeforest Mall on Russell Avenue
- Kaneohe, Hawaii: Windward Centre on Kamehameha Highway
These shutdowns follow Macy’s opening of various small, off-mall locations in 2022. As stated in a news statement from the business in July 2022, the sites featured Market by Macy’s, “a smaller shop offering customers more to adore.” By opening outlets in almost all 50 states last year, Macy’s also assisted Toys “R” Us make a comeback.
Starting in 2023, Macy’s revised its forecast for sales in the fourth quarter of the fiscal year. This was after discovering consumers had spent less than projected during the slow period. The period was between Thanksgiving and the final moments before Christmas.
What is happening in Macy’s?
The New York-based department store chain also operates the upmarket Bloomingdale’s and Bluemercury locations. They recently predicted that earnings for the November to January period would fall between the low and middle of their forecast range. It is between $8.16 billion and $8.4 billion. According to Macy’s, the firm’s adjusted earnings per share for the period should fall between $1.47 and $1.67.
As per Macy’s CEO Jeff Gennette, “Based on present economic factors and our proprietary credit card data, we assume that the client will persist in being under pressure in 2023.” This is especially noticeable in the first half of the year. As a result, the business appropriately plans its inventory mix and the scope of initial buys.
Conclusion
The department store chain, located in New York, operates more than 508 locations nationwide. The company launched at least three more stores in Missouri, Georgia, and Illinois during the fall of last year. Also, it will soon be adding more outlets in other regions. The department store chain has slowly reduced the number of unproductive stores. At the same time, they updated stores indicating signs of potential growth in the future.
The business may have had a complicated financial history in the previous two to three years. But it is now steadily getting back on track with extending its operations nationwide. Even if our local Macy’s is closed, the business may soon open a nearby substitute location. This is to satisfy all of the customer shopping needs.