Department store chain operator Macy’s Inc. announced Tuesday that they would close around 45 of its stores in 2021 as part of a three-year downsizing plan.
“As previously announced, Macy’s, Inc. is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls,” Macy’s told USA Today in a statement Tuesday. “To that end, we announced several store closures today that align to the guidance we provided in February 2020. These closures bring us closer to achieving the right mix of mall-based stores.”
Macy’s, a company that runs over 750 stores, including Bluemercury, Bloomingdale’s and several other stores, also said it would post a list of stores expected to be shuttered this year on its website Wednesday, Reuters reported.
— Reuters (@Reuters) January 5, 2021
Before the 2020 COVID-19 lockdowns in the United States, Macy’s had announced their plan to close down 125 of their least productive stores to deal with plunging retail traffic. That year they closed about 30 stores, according to Reuters.
The COVID-19 outbreak has made the plight of several mall-based chains terrible, driving them to close stores and step up e-commerce, while few chains seek to open smaller stores in off-mall locations, as reported by Reuters. (RELATED: What Would A COVID-19 Stimulus Built For Small Businesses Look Like?)
Macy’s reported in November a quarterly same-store sales decline of more than 20%, as customers reduced their spending on clothes and accessories at the mall during the pandemic, CNBC reported. Digital sales did increase by 27%, but the growth there wasn’t sufficient to offset losses at Macy’s stores.
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