This Iconic Department Store Is Closing 125 Stores, Starting This Month
THE POPULAR RETAILER PLANS TO CLOSE ONE FIFTH OF ITS SHOPS OVER THE NEXT THREE YEARS.
Everything from small boutique businesses to large multinational chains have been affected by the COVID-19 pandemic. When it comes to the retail industry, nearly two years of dealing with the virus appears to have drastically changed the way we shop, as more people opt for online purchases over a trip to the mall. Unfortunately, not even iconic stores have been safe from the shift as on-site sales continue to dry up. Now, one stalwart department store has announced it will be closing six of its locations this month before shuttering a total of 60 this year and 125 in the near future. Read on to see which beloved retailer is shrinking its shopping footprint.
RELATED: This Retail Giant Just Closed 20 Stores Because of COVID.
Macy's will be closing 125 of its department stores over the next three years.
On Jan. 5, Macy's confirmed a list of six departments stores it will be closing by the end of the month, USA Today first reported. The downsizing comes as part of the company's plan to shutter 125 of its stores—or one-fifth of all locations in total—over the next three years.
"Stores remain an integral part of our omnichannel retail ecosystem," Macy's said in a statement to USA Today on Jan. 6. "As our business evolves, we continue to optimize and reposition our store fleet to more effectively support our omnichannel sales growth and expand market share."
This month's store closures will be across five states.
The closures will be spread across five states, according to the list. In Alabama, the Brookwood Village store in Mountain Brook is slated to shutter; California will lose the Puente Hills Mall location in the City of Industry; Colorado will lose both the Boulder location in the Twenty-Ninth Street Mall and the Streets at SouthGlenn store in Centennial; Missouri will see the Summit Fair store in Lee's Summit close; and Texas will lose its Baytown location in the San Jacinto Mall.
Macy's did not specify an exact closing date for the locations. However, it's expected that all six will shutter by the end of the company's first specific quarter, which is typically in late July or early August, USA Today reports.
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Macy's is still deciding how many stores it will close during the coming months.
The most recent closure announcement comes just two months after Adrian Mitchell, Macy's chief financial officer, publicly addressed the company's plans for the upcoming year. During the company's earnings call, Mitchell initially estimated that 10 stores would be announced for closure by the end of January, "with more details on the remaining stores to come later in 2022." The following month, Mitchell told Morgan Stanley's Global Consumer & Retail Conference that "ultimately how many stores we close in the timetable still remains to be determined."
Part of the company's plans for the future appears to be focused on smaller stores located outside of malls such as its new Market by Macy's concept, marking a departure from the department store's historic presence as a large store at shopping centers, CNBC reports. The company also plans to open 400 small format Toys R Us shops within its stores beginning later this year, USA Today reports.
All Macy's locations will also be cutting their store hours in January due to the latest COVID surge.
Besides the permanent closures, Macy's also announced that it would shorten its stores' opening hours for at least the rest of January as COVID-19 cases reach record-breaking highs nationwide. From Monday to Thursday, customers will only be able to shop in nationwide stores from 11 a.m. to 8 p.m. for the rest of the month, CNBC reported on Jan. 4. Some locations were previously open from 10 a.m. to 9 p.m. before this change. Macy's will not cut store hours Friday through Sunday, however, and in-store staff will continue to work their usual hours, a company spokeswoman told CNBC.
"Health and safety of our colleagues and customers continue to be our top priority," Macy's said in a statement. "We will continue to monitor the situation and follow the [Centers for Disease Control and Prevention] CDC and jurisdictional guidelines as well as keep enhanced safety and wellness procedures in place."
RELATED: This Iconic Retailer Is Closing All But 6 Stores by the End of 2021.