Old School Economics | Mises Institute

By Bernadette Giacomazzo of RetailWire

Macy’s has announced that it is closing a total of 55 stores by the end of 2024, in the faltering brand’s ongoing effort to revamp its business.

According to The Daily Mail, the company originally intended to close 50 underperforming stores by the end of the year, part of the 150 total locations it will close within three years. However, it now plans to close 55 before 2025.

The locations of the shuttering stores have not yet been announced, but speculation is abounding that the stores will include a location in Newington, New Hampshire, one in Traverse City, Michigan, and one in WestShore Plaza mall in Tampa, Florida. These stores are reportedly set to close after the winter holidays.

“The biggest things that have gone wrong at Macy’s are the quality of the stores and the product assortment,” GlobalData Retail analyst Neil Saunders said to the outlet.

“And so over the years customers have deserted it, sales have tumbled and store productivity has gone down. All the metrics have gone in the wrong direction.”

News of these closures comes shortly after Macy’s announced that it was diverting funds to its in-house brands in yet another effort to turn the proverbial ship around.

According to TheStreet, the shop has resurrected or introduced a number of other brands, including On 34th and State of Day, as part of its rehabilitation drive. It plans to launch a men’s collection before the end of the year, and a new kids’ brand will follow next.

But Macy’s significant rebrand goes beyond simply bringing back well-known brands. The mall mainstay is purportedly concentrating more on its well-known high-margin luxury products in an attempt to attract customers with a little more disposable income.

The company has said that it will focus its efforts on designer fragrances, which are more affordable than high-end handbags, for example, yet feature coveted brands like Chanel and Dior.

Some Macy’s stores already carry high-end fragrances from brands like Tom Ford, Creed, and Cartier. The company did, however, declare that it will have 42 outlets by the end of 2024 that would sell its high-end cosmetic products, with a focus on scent, as part of its aim to expand the availability of designer fragrances.

Additionally, Macy’s will soon offer store-in-store concepts that will mimic Target’s Ulta strategy and Kohl’s well-known and successful Sephora endeavor.