Several of Macy’s most well-known stores, including Broadway Plaza in Los Angeles, are among those set to close. According to UnionRayo, Macy’s decline can be attributed to several factors, one of the most significant being the impact of COVID-19, which pushed many shoppers toward e-commerce rather than visiting physical retail stores.
The report highlights that in 2023, Macy’s experienced a 5.5% drop in net sales, totaling $21.3 billion, which significantly affected the company’s financial stability.
Additionally, Macy’s struggles mirror those of many other department stores and retailers that have suffered in the wake of the pandemic. As consumer habits have shifted, an increasing number of shoppers now prefer to make purchases online and have products delivered to their homes rather than shopping in-store.
To manage the transition, the chain has initiated clearance sales at some of the locations set to close, offering discounts of up to 70% on select products.
Despite these challenges, Macy’s has made it clear that this is not the end of the brand. The future of the department store largely hinges on how well it can adapt to online retail in the aftermath of the closures.
“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc.
On Reddit, users reacted to the news of Macy’s decision to shut down 150 locations, including some in New York.
“Macy was a giant in the shopping space, if Macy is going down it isn’t looking good for the rest of the clothing stores and this is NYC,” commented user Otherwise-Sun2486.
“Yeah ‘WAS’ is the operative word here. Before the advent of the internet. 40 years ago. They didn’t keep up with changing trends, tastes, and technology. Does anyone here even realize MALLS are not a thing anymore and they’ve been closing across the nation for the past 10+ years?” another user replied.
“Macy’s is so behind that even the computers that they use to train new employees barely work 90% of the time lmao,” another commenter added.
“Wouldn’t be surprised if eventually the 34th Street Herald Square location remains the only physical store for the entire company,” wrote another user.