Macy’s has long been a leading retailer, beloved for its vast selection of products like clothing, shoes, fragrances, toys, and more. It is also famous for its iconic Thanksgiving Day Parade and the massive flagship store in New York City. However, recent headlines about store closures have sparked concern among shoppers. With rumors circulating, many are left wondering: Is Macy’s shutting down? Read on for all the details.
Is Macy’s Closing?
Yes, Macy’s is closing some of its stores.
How Many Macy’s Stores Are Closing?
Macy’s has announced plans to shut down a total of 150 stores over the next three years, per multiple reports. During a second earnings call in September 2024, CFO Adrian Mitchell said, “The implication of that is that we’re going to be closing approximately 55 stores relative to our prior outlook of 50 stores,” according to The U.S. Sun.
Why Is Macy’s Closing Its Stores?
Macy's will close 65 stores within weeks – but not before huge clearance sale https://t.co/yLxFTJCuYp pic.twitter.com/2iGfEqDxas
— Daily Mail Online (@MailOnline) December 12, 2024
The decision to close stores stems from financial struggles. Macy’s is restructuring to focus on profitability by shutting down underperforming locations.
Macy’s CEO Tony Spring said of the shutdowns, “At the start of the closure strategy, [we] said we had locations that were less profitable and less productive, and we wanted to monetize them as soon as possible,” according to The U.S. Sun. “So the fact that we are closing more stores this year is a reflection of the fact that our assets have value and that even in this less stable market, we are transacting.”
In addition, Mitchell expressed, according to Fox Business, “These are places where the economics are not as favorable. These are places where customers have shifted away from those centers to shop. And these are stores that are just incredibly difficult to run. So I’ll just start with that fundamental premise.”
How Much Money Did Macy’s Make This Year?
Despite the store closures, Macy’s remains a major player in the retail world. As of December 11, 2024, the company reported on its website $4.7 billion in net sales for the year, reflecting a 2.4% decrease compared to the previous year.