Macy’s 14 Store Closures as Part of Downsizing Plan to Revitalize Business
Macy’s is in the process of closing 14 stores this year, continuing its downsizing strategy announced two years ago under the leadership of CEO Tony Spring. The store closures are part of Macy’s effort to restructure and turn around its business.
In a memo sent to employees on Thursday, Spring explained that the company is making “careful decisions about where and how we invest, including closing underproductive stores and streamlining operations.” These targeted changes will help Macy’s focus on areas that have the greatest impact, such as reimagining its best stores, enhancing customer service, expanding its luxury business, and improving supply chain capabilities.
Where Macy’s 14 Stores Will Close This Year
The list of stores to be closed includes locations in various states. Some closures are already scheduled for Q1, while others, such as the one in the Buffalo area of New York, will close mid-year. The following stores are on the closure list:
| State | City | Address | Location |
|---|---|---|---|
| CA | La Mesa | 5500 Grossmont Ctr Dr. | Grossmont Center |
| CA | Tracy | 3400 Naglee Rd. | West Valley Mall |
| GA | Atlanta | 4880 Briarcliff Rd. NE | Northlake Mall |
| MD | Glen Burnie | 7900 Ritchie Hwy | Marley Station |
| MI | Grandville | 3850 Rivertown Pkwy SW | RiverTown Crossings |
| MN | Saint Cloud | 4101 W Division St. | Crossroads Center |
| NC | Raleigh | 3801 Sumner Blvd. | Triangle Town Center |
| NH | Newington | 50 Fox Run Rd. | Mall at Fox Run |
| NJ | Livingston | 112 Eisenhower Pkwy | Livingston Mall |
| NJ | Ramsey | 225 Interstate SC | Interstate Shopping Center |
| NY | Amherst | 1255 Niagara Falls Blvd. | Boulevard Mall |
| PA | Tarentum | 100 Pittsburgh Mills Cir | Galleria at Pittsburgh Mills |
| TX | Corpus Christi | 5488 S Padre Island Dr. | La Palmera |
| WA | Tukwila | 17855 Southcenter Parkway | Budget House Clearance |
Most of the closures will happen early in the year, including two in California and two in New Jersey. Other stores in Georgia, Maryland, Michigan, Minnesota, North Carolina, Pennsylvania, Texas, and Washington will also close.
The list includes a small format store in Ramsey, New Jersey, and a clearance furniture store in Tukwila, Washington. Two other Macy’s stores in Tukwila, including a full-line store and a furniture store, will remain open. The closure of the Ramsey location is seen as a shift from the expansion plans for smaller formats previously envisioned under former CEO Jeff Gennette.
The Impact of Macy’s 14 Store Closures on Business Strategy
Despite the closures, Macy’s remains optimistic about its strategy. Spring emphasized that decisions to close stores “are not made lightly.” He pointed to the superior results of stores where the company focused its resources, including stores that have been revamped. Last year, Macy’s posted its strongest Q3 comparable store sales in three years, led by revamped stores, which saw comps rise 2.7%. Overall, Macy’s net sales fell by 2.3%, with comparable sales up 2%.
Evercore ISI analysts, who have been tracking Macy’s State Street flagship in Chicago for 15 years, noted that the company’s recent changes have led to improvements in merchandising and customer service. They said the changes Macy’s is making today are driving more positive progress than any point in the last 15 years.
Support for Affected Employees
Spring also thanked the employees affected by the store closures. Macy’s is providing support, including transfer opportunities, severance, and outplacement resources where applicable.
“We have made meaningful progress and remain clear-eyed about the work ahead,” Spring stated in his memo, emphasizing the company’s ongoing efforts to revitalize its business and secure future growth.
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