Macy’s plans to shut down 65 stores by the end of this fiscal year, an increase from the 50 closures it previously announced. The decision is part of a broader strategy to wind down operations at 150 underperforming locations over the next three years. CEO Tony Spring shared the update during the company’s third-quarter earnings report, confirming that closures will begin after the holiday season.
This development comes in the wake of an internal accounting issue involving $151 million in misreported expenses tied to small package deliveries. An investigation revealed a single employee had falsified records and made inaccurate entries.
Macy’s CFO Adrian Mitchell clarified that the issue did not affect revenue, cash flow, or vendor payments. The company has since implemented stronger financial reporting controls to address the situation.
Adapting to a Changing Industry
Macy’s closures reflect the mounting difficulties faced by traditional department stores. With fewer shoppers visiting malls and more turning to e-commerce, brick-and-mortar retailers are under increasing pressure.
In 2024, over 7,100 U.S. store closures were announced—a sharp rise of 69% compared to the previous year—according to CoreSight Research. Retail bankruptcies have also surged, with 45 companies filing this year compared to 25 in 2023.
Amid these challenges, Macy’s is focusing on growth opportunities through its Bloomingdale’s and Bluemercury brands. Plans include opening 15 new Bloomingdale’s stores, launching 30 Bluemercury locations, and renovating 30 existing Bluemercury outlets over the next three years.
Although Macy’s stock has fallen by roughly 20% over the past year, the company aims to evolve its business model and invest in areas with higher growth potential.
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