Macy’s loses $21.3B in income and proclaims it is going to be closing 150 shops

Macy’s has introduced plans to shutter 150 shops over the following two years as a part of its “Daring New Chapter” technique, aimed toward restructuring the corporate amidst falling gross sales, shifting shopper behaviors, and the rise of on-line procuring.

The closures will have an effect on iconic areas reminiscent of Los Angeles’ Broadway Plaza.

UnionRayo attributes Macy’s downturn to a number of components, together with the COVID-19 pandemic pushing customers in direction of e-commerce as an alternative of brick-and-mortar retail.

In 2023, Macy’s skilled a 5.5% decline in web gross sales, totaling $21.3 billion, which dealt a big blow to the retailer’s monetary well being.

This development mirrors challenges confronted by different retailers and shops within the trade, as extra customers go for on-line procuring and residential supply.

To handle the upcoming closures, Macy’s has launched clearance gross sales at affected shops, providing reductions of as much as 70% on choose gadgets.

Regardless of the shop closures, Macy’s stays optimistic in regards to the model’s future, which hinges on its efficiency within the digital market after the bodily shops are closed.

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“Closing any retailer is rarely straightforward, however as a part of our Daring New Chapter technique, we’re closing underproductive Macy’s shops to permit us to focus our sources and prioritize investments in our go–ahead shops, the place clients are already responding positively to higher product choices and elevated service,” acknowledged Tony Spring, chairman and chief government officer of Macy’s, Inc.

Reddit customers have been sharing their ideas on the information that Macy’s will likely be closing 150 shops, together with some in New York.

“Macy was a large within the procuring area, if Macy goes down it is not trying good for the remainder of the outfitters and that is NYC,” commented person In any other case-Sun2486.

“Yeah ‘WAS’ is the operative phrase right here. Earlier than the appearance of the web. 40 years in the past. They did not sustain with altering traits, tastes and know-how. Does anybody right here even notice MALLS aren’t a factor anymore and so they’ve been closing throughout the nation for the previous 10+ years?” one other person responded.

“Macy’s is so behind that even the computer systems that they use to coach new staff barely work 90% of the time lmao,” added one other commenter.

“Would not be stunned if ultimately the thirty fourth Road Herald Sq. location stays the one bodily retailer for your entire firm,” one other person speculated.