Department store chain Macy’s is struggling and trying to rebound by closing stores that they feel are not all that profitable. The retailer plans to close 150 stores over three years, and now more stores than originally expected will be closing in 2024.
The original announcement was that Macy’s would close 50 stores during the 2024 fiscal year, but Macy’s has decided to increase that number to 65 stores.
This announcement was made by Macy’s CEO Tony Spring during a quarterly earnings call. Spring said, “We now expect to close roughly 65 locations this year.” He added, “In line with our typical cadence, closures will occur post holiday.”
Why is Macy’s struggling, and why is Macy’s closing so many store locations? The issue has to do with a shift in consumer shopping habits. Many customers choose to shop online instead of visiting a brick and mortar store location. That leads to less than ideal sales and makes it less necessary to have so many retail store locations.
Macy’s instead the only retailer that is struggling due to this shift in shopping habits. In fact, CBS News reports that in 2024 alone, retailers have announced more than 7,100 store closures! That’s a 69% increase in store closure announcements since 2023!
The retailer that closed the most store locations in 2024 was Family Dollar which closed 677 stores, followed by CVS which closed 586 stores, Big Lots which closed 580 stores, Conn’s which closed 553 stores, rue21 which closed 543 stores and 7-Eleven which closed 492 stores. Other retailers that closed a significant number of stores in 2024 include Rite Aid, 99 Cents Only Stores, American Freight, Walgreens, DK, LL Flooring, Foot Locker and Express which have all closed more than 100 stores.
For some retailers, closing stores isn’t enough. There have been 45 retailers that have filed for bankruptcy in 2024, which is another huge increase from 2023 when only 25 retailers filed for bankruptcy.
Watch the video below to learn more about this store closure update from Macy’s.
Does it surprise you that Macy’s is closing so many retail store locations? Do you shop online more than you used to?