Macy’s is ramping up store closures this year as it struggles to revive its faltering business.
In February, the embattled retailer announced plans to shut 150 underperforming stores within three years – including 55 closures by the end of 2024.
But the company now expects to close 65 locations by the end of the year. Bosses said they will remain open through the holidays to let regular customers shop but then shutter for good before the end of December.
Macy’s has yet to announce exactly which stores will be affected, but employees are speculating whether their location could be on the chopping block. The latest to emerge is at the Kingston Collection mall in Massachusetts.
Once all 150 are shuttered, Macy’s will be left with just 350 stores – a far cry from the peak of around 1,100 in 2008.
Like many department stores, Macy’s has been suffering from dwindling sales amid the stratospheric rise of online rivals and the demise of America’s suburban malls.
The company appointed a new CEO, Tony Spring, earlier this year, who announced a major turnaround effort.
Spring revealed the updated closure numbers during Macy’s latest earnings on Wednesday, telling investors: ‘We now expect to close roughly 65 locations this year. Closures will occur post-holiday.’
Sales at the iconic department store chain – which also owns Bloomingdale’s – fell by 2.4 percent in the quarter ending in November, the company also reported Wednesday. Macy’s also significantly lowered its expected earnings for 2024.
Shares plummeted more than 12 percent Wednesday on the news, but have mostly recovered by Thursday lunchtime. They are still down 15 percent so far this year.
Adding to the turmoil, Macy’s is dealing with an accounting scandal involving a single employee who hid over $150 million in delivery expenses. The company insists this was a one-off but admits the error has cost them $79 million in their full-year outlook.
A retail expert told DailyMail.com that while there may be more store closures, Macy’s still makes a profit and so was not a bankruptcy risk.
On this Wednesday’s quarterly earnings, retail expert Neil Saunders – from GlobalData – said: ‘Macy’s outlook is very mixed. There is still a big dose of decline in the numbers, but the chain isn’t at the bottom of the department store league table – which is positive.
‘The numbers are not expected to strengthen significantly over the year ahead as the consumer economy remains pressured and Macy’s is in the middle of a turnaround program.
‘There will certainly be store closures in the year ahead, but most of these have already been planned in.
‘Macy’s might be struggling to generate growth, but the group is still generating profit and is in the black. As such, bankruptcy is not on the cards.’
Macy’s is one of many retailers closing stores this year as the ongoing ‘retail apocalypse’ forces brick-and-mortar locations to grapple with rising theft and shrinking profit margins.
There were almost 2,600 store closures in the first four months of 2024. If that trend continues, almost 8,000 will have been lost by the end of the year.
It emerged in October that Walgreens will shutter more than 1,200 stores in bid to turn around struggling chain.
In the same month, Big Lots said it was shutting 500 stores across multiple states as its financial woes worsen.
Meanwhile, Badcock Home Furniture & More said at the end of July it is closing all its 380 stores dotted around the South after it fell into bankruptcy earlier this year.
Dollar stores have been hit hard too, with 99 Cents Only announcing in April it would shutter all 371 of its locations across California, Texas, Arizona and Nevada.
Family Dollar has said it will shut 1,000 stores under its own banner and that of sister company Dollar Tree over the next three years.
