(The Slice): Macy's, the largest department store in the United States, is downsizing to increase online fulfillment. It's biggest chop to date came in 2022.
The company closed 33 stores across the U.S. by the end of December, affecting 18 states. To date, 722 Macy's stores remain.
In 2023, more Macy's doors will be permanently shut. One of the earliest closures will be at the Foothills Mall in Fort Collins, CO. After almost 50 years, the last remaining department store at that mall will permanently close its doors in March 2023. Department stores have been the life blood of malls. When they're are gone it is not uncommon for malls to fail.
Stenn Parton, President of Prism Places, owners of the mall told the Coloradan newspaper he expects a redevelopment plan will be more clear by the end of 2023.
"That's the dichotomy of retail today," Parton said. "A lot of these department stores propped up these projects (malls) for long time."
Parton has begun to consider how to re-purpose the 128,000 square foot space but says he and his partners are not in a hurry so they can get it right.
The Macy's store closures have taken place in gradual stages since 2015. But after the pandemic began in 2020 company heads began to par down more low performing retailers. The pandemic issued a fatal blow to many other retailers and small businesses, some that opted to continue online while others fully closed including Old Navy and Big Lots to name a few.
California and Washington state both lost 3 stores permanently.
The company's says its goal is to operate 650 stores nationwide. Realizing their online sales are best where they have store fronts they will continue to keep stores running. However,
The other 16 states with Macy's store closures are New Jersey, Florida, Texas, Hawaii, Florida, North Carolina, Georgia, Connecticut, Massachusetts, Maryland, New York, Illinois, Kentucky, Ohio, Pennsylvania and Indiana.
The pandemic undoubtedly gave e-commerce a boom due to social distancing rules making online shopping convenient. Amazon's dominance disrupted retail, yet as the pandemic dwindled down shoppers returned in-person. Most Americans still prefer going "to the store."
Consumer behavior patterns contribute to driving markets.
Even Amazon was affected by the dictates of consumers and and decided to close many of its brick-and-mortar businesses. Bookstores, pop-ups and 4-star stores -- nearly 70 locations — 66 in the U.S., two in the U.K.— were boarded up.
The leaders of Macy's seem to understand that people want to shop in-person as they have focused on growing online and retaining enough stores for offline sufficiency. They have adapted the model with in-store pick up that other stores use. Customers can save time by taking advantage of the conveniene of shopping online and picking up an item in the store rather than paying for shipping costs. The store benefits further if the customer chooses to shop while they are picking up an order.
Macy's has retained customers by offering deep end-of-season discounts, regular anticipatory sales throughout the year, extra savings for loyalists/card holders and a wide selection of women's shoes, apparel and accessories -- the stores top sellers.
Upscale retailer Bloomingdale's, which specializes in offering European brands, became a subsidiary of Macy's in 2006.
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