UPDATED JANUARY 5, 2017
Source: Nerd Wallet
Macy's has just announced on Wednesday that about 10% of its 730 stores will be closing across the country, the first major announcement regarding closing stores in the new year. These 68 stores are part of the list of 100 stores Macy's announced for closure mid last year. The mega-retailer hopes to revamp their online retail strategy and focus on Macy's Backstage in an effort to salvage the recent years of declining sales. To date, 3 of the 68 stores have already closed and final blowout sales have begun or will begin for another 6 stores. The remaining stores will close by the end of the year, according to Patch.
Final clearance sales will begin January 9 (will close after 8 to 12 weeks)
Will close by end of 2017
While Christmas shopping, you may have noticed that your local Macy’s is having an out of business sale. Or maybe it has already closed. While Macy’s is a mall favorite – especially this time of year – declining revenues are leading to the closure of 100 stores.
In August 2016, the upscale retailer announced plans to close 100 stores by early next year. The list of 100 stores has not yet been released, although one has closed already: Quail Springs Mall in Oklahoma City, Oklahoma. Seven more stores are expected to close in the first quarter of 2017, with some even closing by the end of this year. They include the following stores:
Macy's Men's store in Union Square in San Francisco, California
Douglaston Mall in Douglaston, New York
Lancaster Mall in Salem, Oregon
Southwest Morrison St. in Portland, Oregon
Greenwood Mall in Bowling Green, Kentucky
Carolina Place in Pineville, North Carolina
Oakwood Mall in Eau Claire, Wisconsin
The exact closure date will depend on whether or not the store is being leased. Stores with leases will close when the lease expires. Stores owned directly by Macy’s will close sooner than others.
Source: USA Today
Although not confirmed, there are 28 other locations that are slated for possible closure in early 2017 due to low sales and competition from other high-end retailers:
Visalia Mall in Visalia, California
Sunvalley Shopping Center in Concord, California
Lakewood Center in Lakewood, California
Bend River Promenade in Bend, Oregon
Tucson Mall in Tucson, Arizona
Meadowood Mall in Reno, Nevada
Cottonwood Mall in Albuquerque, New Mexico
South Towne Center in Sandy, Utah
Sangertown Square in New Hartford, New York
Dover Mall and Commons in Dover, Delaware
The Shops at Wiregrass in Wesley Chapel, Florida
Lakeland Square Mall in Lakeland, Florida
Friendly Center in Greensboro, North Carolina
Crossroads Center in Saint Cloud, Minnesota
Battlefield Mall in Springfield, Missouri
Westfield Trumbull in Trumbull, Connecticut
Montgomery Mall in North Wales, Pennsylvania
Peachtree Mall in Columbus, Georgia
Glenbrook Square in Fort Wayne, Indiana
Oglethorpe Mall in Savannah, Georgia
Willowbrook Mall in Houston, Texas
Town East Mall in Mesquite, Texas
Starwood National Mall Portfolio in Plano, Texas
Penn Square Mall in Oklahoma City, Oklahoma
The Mall of New Hampshire in Manchester, New Hampshire
Source: New York Daily News
Stores in the Midwest, South and Northeast have experienced the most significant declines and are therefore more likely to be shut down. The top 10 cities with the biggest decrease in market share from 2014-2015 are:
Milwaukee, Wisconsin – 14% loss
Pittsburgh, Pennsylvania – 12% loss
Hartford, Connecticut – 9.4% loss
Philadelphia, Pennsylvania – 9.1% loss
Detroit, Michigan – 8.2% loss
Cincinnati, Ohio – 7.5% loss
Daytona Beach, Florida – 7.4% loss
St. Louis, Missouri – 6.2% loss
Columbus, Ohio – 5.9% loss
Cleveland, Ohio – 5.7% loss
These numbers show that Macy’s stores located in Ohio and Pennsylvania saw the biggest losses, followed by Wisconsin, Connecticut, Michigan, Florida and Missouri. As Macy’s continues to analyze data, expect store closures in these states.
Source: Dulles Town Center
One of the biggest reasons for the Macy’s store closures is declining sales. Similar retailers such as Nordstrom, Dillard’s and Lord and Taylor are all battling for sales. As a result, Macy’s has been hit hard financially. Third-quarter sales this year were $5.63 billion, down from last year’s third-quarter sales of $5.87 billion. While this may still seem like a respectable number, Macy’s is far from being profitable. The net income from third quarter 2015 was $117 million. This year, it was a paltry $15 million, meaning that Macy’s is earning just 2 cents on every dollar it brings in.
In addition, more and more customers are choosing to shop online, and the abundance of Internet retailers allows customers to find better selection and lower prices.
Real estate is also a factor in the closings. Investors want stores that bring in more value, so underperforming stores are under pressure to earn more revenue. The goal is to close these stores and add more value to stores in more profitable areas.
As with any store closing, the 100 Macy’s store closures will result in layoffs. More than 150,000 are employed by Macy’s, and the closures represent 15% of this amount. These employees will be out of a job, unless they can transfer to a different store.
If you’re a die-hard Macy’s fan and are expecting a store closure in your area, don’t despair. Not all 100 closures will happen by December 31. Take advantage of the opportunity to visit a local store and shop this holiday season. Larger metropolitan areas may have alternate Macy’s stores nearby, so check out a new location. If all else fails, you can still shop online. At Macys.com, you can shop for your favorite clothes and houseware items 24/7.