This Iconic Department Store Is Closing 60 Stores, Starting in January
This company has already announced the closures of several locations next month.
From gyms to clothing stores, countless businesses were forced to close up shop in 2020 because of the COVID pandemic. But while progress has been made toward containing the virus, store closures continue. Walgreens closed several locations last month and CVS announced in November that it would be shuttering nearly 900 locations over the next three years. And now, one iconic department store has announced that it is closing several locations next month, with 60 total closures coming soon. Read on to find out which popular retailer is downsizing.
Macy's is closing 10 stores in January.
Macy's recently announced that it would be closing some of its stores in the first month of 2022. According to CNBC, the retailer said on Nov. 18 that it will close 10 stores in January, with the exact locations to be announced next month. Macy's revealed in 2020 that it was planning to shutter 125 stores over the next three years, and these 10 stores are included in that total.
"We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work," Macy's CEO Jeff Gennette said in a statement to the news outlet at the time. "The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today's retail environment."
And the retailer plans to close 50 remaining stores by 2023.
Those 10 stores are just part of the 60 in total Macy's plans to close by 2023, but it is delaying the closures of the remaining 50 stores. According to CNBC, since Macy's announcement in 2020, the retailer has closed 65 stores, leaving 60 locations left to shutter.
"The delayed closure of certain stores allows us to maintain a physical presence in the market, which is critical to our top line growth," Macy's CFO Adrian Mitchell told analysts on an earnings conference call, per CNBC. "Digital performance is stronger in the markets where we have stores."
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Macy's has been testing smaller store locations.
According to CNBC, Macy's has been testing smaller-formatted locations outside of malls. Many of the retailer's closures have been larger locations anchored at traditional malls. "We continue to believe that the best malls in the country will thrive. However, we also know that Macy's and Bloomingdale's have high potential [off]-mall and in smaller formats," Gennette told analysts in 2020.
Mitchell told analysts in Nov. 2021 that the openings of these smaller locations have brought in strong sales that have exceeded the company's expectations. As a result, the retailer now sees a "clear path" with off-mall stores, Mitchell said.
The retailer has also announced a new digital marketplace.
On Nov. 18, Macy's also announced that it plans to launch a curated digital marketplace. The retailer said its marketplace is expected to launch in the second half of 2022. And to power the online marketplace, Macy's is partnering with technology company Mirakl, which already works with notable businesses like Kroger, Urban Outfitters, and Toyota.
"The marketplace platform will enable us to expand our assortment at a low incremental cost, while giving Macy's customers easy access to even more product selection to meet their diverse needs," Matt Baer, the chief digital and customer officer for Macy's, said in a statement.
Gennette added to CNBC, "We also recognize the significant value the market is assigning to pure e-commerce businesses. And as we look at the landscape today, we are undertaking additional analysis that could help inform our long term strategy to further unlock value for Macy's."