Is Macy’s going out of Business: What Locations are Closing?

James Anderson
By James Anderson 10 Min Read
10 Min Read

Are you wondering, “Is Macy’s really shutting down?” You’re not alone in this. As we step into the new year, a fresh wave of Macy’s store closures is on the horizon. Back in 2020, Macy’s unveiled their “Polaris” transformation plan, which included some significant changes. Part of this big plan? Closing additional stores in 2024.

So, what does this mean for loyal Macy’s shoppers? Well, if you’re used to popping into one of their stores at your local mall, you might have to switch gears. Particularly, if you’re in California, Colorado, Maryland, or Hawaii, as Macy’s stores in these states are set to close their doors by January 2024. It might be time to start exploring other shopping options or to get comfy with online shopping.

But let’s clear the air: Macy’s isn’t packing up for good. They aren’t going out of business. Instead, what they’re doing is a bit of a strategic shuffle. Since 2020, Macy’s has been focusing on shutting down its less successful stores. This move is part of their bigger plan to grow and evolve as a company. In fact, over the next few years, they’ve planned to close around 125 stores.

This isn’t just a random decision. It’s a well-thought-out strategy to keep Macy’s thriving in a changing retail landscape. So, while it might be sad to see some stores go, it’s all part of Macy’s journey towards a brighter, more innovative future.

Overview Of Macy

Let’s take a trip down memory lane to where it all began for Macy’s. Picture this: the year is 1858. Rowland Hussey Macy opens the doors to what would become one of the United States’ most iconic department store chains – Macy’s. Fast forward to 1994, and Macy’s joins forces with Federated Department Stores. Things really started shaking up in 2005 when Macy’s gobbled up May Department Stores Company, leading to the retirement of local store names.

By 2006, Macy’s and Bloomingdale’s became household names across the globe. And in 2007, the company behind these giants rebranded itself as Macy’s, Inc., marking a new chapter in its history. By 2015, Macy’s proudly wore the crown as the largest department store chain in the U.S., in terms of retail sales.

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Now, let’s zoom into the present – specifically, February 20, 2024. Macy’s has an impressive network of 508 retail locations across the country. And guess which state is the Macy’s champion? California, with a whopping 90 stores, accounting for nearly 18% of all Macy’s locations nationwide!

The year 2020 brought some big changes for Macy’s. The company said goodbye to its Cincinnati headquarters, consolidating all headquarters functions in New York City. Then, in August 2021, Macy’s surprised everyone by partnering with Toys “R” Us to bring toy stores into Macy’s locations starting in 2022. November 2021 saw Macy’s stepping up its game with the introduction of a free education program and bumping up its corporate minimum wage to $15 per hour.

And let’s not forget Macy’s commitment to sustainability. In February 2024, Macy’s announced a significant eco-friendly move: they’re stopping the sale of leather goods made from exotic skins, like reptile or ostrich leather. It’s clear that Macy’s isn’t just about selling products; they’re also about making a positive impact.

Is Macy’s Closing All Locations?

In 2024, Macy’s is entering another phase of store closures, but it’s not a total shutdown. During the first quarter of the year, Macy’s plans to close four locations nationwide. If you’re near the malls in California, Colorado, Hawaii, and Maryland, brace yourself for some major clearance sales lasting 8 to 12 weeks as these stores prepare to say goodbye.

For the employees at these stores, Macy’s is trying to soften the blow. According to a Macy’s spokesperson, staff members will either be transferred to nearby stores or receive layoff compensation.

This move is part of a bigger picture: Macy’s three-year restructuring plan announced back in 2020. The goal? To streamline operations, bring teams closer, and eliminate overlapping efforts. Macy’s CEO Jeff Gennette explained back then that the plan included shutting down about 125 stores and cutting thousands of jobs. It’s all about reshaping Macy’s for the future.

Macy’s has been on this path for a while. In the past years – 2020, 2021, and 2022 – Macy’s closed several stores, including seven in January of the previous year. The department store chain has been experimenting with smaller, more trendy stores called “Market by Macy’s,” located outside traditional suburban shopping centers.

Let’s talk specifics. The four Macy’s stores slated for closure this year are:

  • 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.
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These closures follow Macy’s strategy of opening smaller, off-mall locations in 2022. These sites, known as “Market by Macy’s,” aim to offer customers a unique shopping experience. Plus, Macy’s played a crucial role in bringing Toys “R” Us back to almost all 50 states last year.

Lastly, Macy’s has tweaked its sales forecast for the fourth quarter of the fiscal year starting in 2024. This adjustment comes after noticing that customer spending was lower than expected during the crucial holiday shopping period from Thanksgiving to Christmas.

What Is Happening In Macy’s?

Macy’s, the renowned New York-based department store, is navigating some challenging waters. Known for its flagship brand as well as the upscale Bloomingdale’s and Bluemercury stores, Macy’s recently shared some financial insights. For the period from November to January, Macy’s anticipates its earnings will be somewhere in the middle of their initial predictions, ranging between $8.16 billion and $8.4 billion. Also, they’re expecting their adjusted earnings per share to be between $1.47 and $1.67.

Macy’s CEO, Jeff Gennette, has his finger on the pulse of the economy and what it means for shoppers. He pointed out that, based on current economic conditions and data from their own credit card transactions, they’re expecting customers to feel the pinch well into 2024, particularly in the first half of the year. This isn’t just a hunch; it’s backed up by hard data.

So, what’s Macy’s strategy in light of these challenges? They’re getting smart about their inventory. The company is carefully planning what products they stock and the extent of their initial purchases. This move is all about striking the right balance between meeting customer needs and managing financial risks.

In a nutshell, Macy’s is staying alert and agile. They’re responding to economic trends and customer behaviors, adjusting their strategies to ensure they continue to thrive even in a tough economic climate.

Conclusion

Macy’s, the iconic department store chain headquartered in New York, is not just standing still. With over 508 locations spread across the nation, they’re continually adapting and expanding. Just last fall, Macy’s introduced at least three new stores in Missouri, Georgia, and Illinois. And there’s more on the horizon – the company plans to open additional outlets in various regions.

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This expansion goes hand-in-hand with a strategic shift. Macy’s has been gradually phasing out stores that aren’t performing well. But it’s not just about closing doors; they’re also rejuvenating stores that show promise for future growth. It’s a careful balance of trimming down while scaling up.

Despite a few financial hurdles in the past couple of years, Macy’s is making a strong comeback. They’re expanding their reach across the country, proving their resilience and commitment to growth. So, even if your local Macy’s store closes, keep an eye out – Macy’s might just surprise you by opening a new store nearby. They’re dedicated to meeting the shopping needs of their customers, wherever they may be.

In summary, Macy’s is navigating its path with a clear vision: to adapt, grow, and continue serving its customers in new and innovative ways.

Frequently Asked Questions

1. Is Macy's going out of business?

There have been some store closures, but Macy's as a company is not going out of business.

2. What locations are closing?

Macy's has announced the closing of around 125 stores over the next three years. The specific locations have not yet been announced.

3. How will this affect Macy's employees?

Macy's has stated that they will offer severance to eligible employees affected by the closures. They will also work to place affected employees in other open positions within the company whenever possible.

4. Will there be any discounts on merchandise at closing Macy's locations?

Macy's typically offers clearance and liquidation sales when stores close, so customers may be able to find discounts on merchandise at closing locations.

5. Will Macy's continue to operate an online store?

Yes, Macy's will continue to operate their online store, which offers a wide range of products and allows customers to shop from the comfort of their own homes.

6. Are there any plans to open new Macy's locations in the future?

Macy's has not announced any plans to open new locations at this time. Their focus is currently on improving the performance of their existing stores.

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Introducing James Anderson, a tech enthusiast and seasoned writer who has made a name for himself in the tech blogging world. With a deep understanding of tech, Android, Windows, internet, social media, gadgets, and reviews, James has honed his skills in crafting informative and engaging articles. His passion for technology shines through his work, as he expertly dissects complex topics and offers valuable insights to his readers. With a writing style that is both approachable and knowledgeable, James has garnered a loyal following who rely on his expertise to stay up-to-date with the latest tech trends and make informed decisions.
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