Macy’s to Close 65 Stores in 2024 Amid Retail Struggles
Macy’s is accelerating its store closure plans, announcing it will shut down 65 locations this year—an increase from the 50 closures previously scheduled for the fiscal year. This move is part of the company’s larger strategy to eliminate around 150 underperforming stores over the next three years.
The update was shared during Macy’s third-quarter earnings call on Wednesday.
Post-Holiday Closures Expected
“We now expect to close roughly 65 locations this year,” said Macy’s CEO Tony Spring. He added that the closures would occur after the holiday shopping season.
The announcement comes as Macy’s addresses broader challenges within the retail industry, including dwindling mall traffic and rising online shopping trends.
Accounting Scandal Revealed
Macy’s had delayed reporting its third-quarter earnings after uncovering a $151 million accounting error tied to small-package delivery expenses. An independent investigation found that a single employee intentionally falsified accounting records and documentation.
Adrian Mitchell, Macy’s COO and CFO, clarified that the issue did not involve theft and had no impact on revenue, cash flow, or inventory, as all vendors were fully paid. The company is now revamping its financial reporting controls to prevent future issues.
Department Stores Face Industry-Wide Challenges
Macy’s closures reflect broader struggles in the retail sector. With fewer customers visiting physical stores, U.S. retailers have announced over 7,100 store closures by the end of November 2024—a 69% increase compared to the same period last year, according to CoreSight Research.
The number of retail bankruptcies has also surged, with 45 retailers filing for protection in 2024, compared to 25 in 2023.
Largest Retail Store Closures in 2024
The retail chains leading store closures in 2024 include:
- Family Dollar: 677 closures
- CVS Health: 586 closures
- Big Lots: 580 closures
- Conn’s: 553 closures
- Macy’s: 55 closures
Macy’s Strategic Shift
Despite challenges, Macy’s is focusing on growth through its Bloomingdale’s and Bluemercury brands. Over the next three years, the company plans to:
- Open 15 new Bloomingdale’s stores.
- Launch 30 new Bluemercury locations.
- Remodel 30 existing Bluemercury stores.
Stock Performance
Macy’s stock has dropped approximately 20% over the past year, reflecting investor concerns amid the company’s restructuring efforts and broader retail struggles.
