Macy's closing 45 more stores
Move is part of plan to close 125 locations by 2023
Macy's has notified employees at roughly 45 of its department stores that the locations will shut down later this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| M | MACY'S INC. | 15.07 | +0.51 | +3.50% |
The move is part of a plan announced by Macy's in February, before the coronavirus pandemic began, to close 125 locations by 2023. At the time, Macy's said it would also cut roughly 2,000 corporate jobs and close several offices, including one of its headquarters.
"As previously announced, Macy’s, Inc. is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls," a Macy's spokesperson told FOX Business in a statement. "To that end, we announced several store closures today that align to the guidance we provided in February 2020. These closures bring us closer to achieving the right mix of mall-based stores."
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The following stores are slated to close by the end of Macy’s first quarter, which ends April 30, 2021:
- Paradise Valley, Arizona
- El Cajon Parkway, California
- Hilltop, California
- Brass Mill Center, Connecticut
- Crystal Mall, Connecticut
- Port Charlotte Town Center, Florida
- Volusia Mall, Florida
- Greenbriar, Georgia
- Hyatt Regency (Maui, Hawaii)
- Grand Teton Mall, Idaho
- Water Tower Place, Illinois
- College Mall, Indiana
- Independence Center, Missouri
- Northpark Mall, Missouri
- West Park Mall, Missouri
- Sangertown Square, New York
- White Plains Galleria, New York
- Great Lakes Mall, Ohio
- Richland Mall, Ohio
- Tri-County Mall, Ohio
- Marlow Heights, South Carolina
- The Avenue Carriage Crossing, Tennessee
- Old Hickory Mall, Tennessee
- Golden Triangle, Texas
- Post Oak Mall, Texas
- Rivercenter, Texas
- Rolling Oaks, Texas
- Vista Ridge Mall, Texas
- Commons at Federal Way, Washington
- Northtown, Washington
- Santa Monica, California (Bloomingdale's)
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The announcement comes after Macy's said in September that the retailer would be testing its luck with smaller stores that are away from underperforming malls. Other financial recovery plans Macy's is undertaking include strengthening customer relationships and loyalty programs, curating quality fashion and accelerating digital growth. Macy's also said it plans on optimizing its store portfolio and resetting its cost base as ways to conserve cash.
In June, Macy’s Inc. dodged bankruptcy after securing around $4.5 billion in financing. However, the retailer said it would lay off 3,900 employees as the pandemic hammered sales. The move sparked criticism after SEC filings revealed the company's top executives received $9 million in equity bonuses just weeks after the layoff announcement.
Macy's losses narrowed to $91 million in its latest quarter, compared to a $431 million loss in the second quarter of 2020 and a $3.58 billion loss in the first quarter of 2020, as its digital business delivered strong growth and sales in its stores continue to recover from COVID-19-related closures. The department store chain reported a quarterly same-store sales decline of more than 20%, as consumers cut back their spending on clothes and accessories during the pandemic.
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As of the third quarter of 2020, the retailer has operated 544 of its namesake department stores, along with 34 Bloomingdale’s locations, 19 Bloomingdale’s outlets and 166 Bluemercury shops, according to its website.