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Macy's To Close About 45 Stores In 2021

macys jan06 lt

Department store chain Macy's is closing around 45 stores in fiscal 2021, as part of its previously announced 3-year store closure plan, multiple reports said.

Liquidation sales have already started at some of these locations, while the remaining stores will start the sales later this month.

The New York City-based retailer in last February had announced plan to shut 125 locations by 2023 and to cut around 2000 jobs as it struggles to boost its sales amid a weakening retail climate. Even before coronavirus crisis, the company was anticipating negative comparable sales and weak net sales in fiscal 2020.

A Macy's spokeswoman reportedly said, "As previously announced, Macy's is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls. 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, which sells women's and men's clothing and other items, in last September said it plans to open several smaller format off-mall Macy's and would test a smaller format off-mall Bloomingdale's, beginning in the fourth quarter of 2021. In off-price, the company plans to open several additional freestanding Backstage stores, continue the expansion of Bloomingdale's The Outlet and test Backstage online.

Earlier, Macy's said it was testing a new store format, Market by Macy's., which is smaller than an average Macy's store and will be located off-mall in lifestyle centers. The first Market by Macy's opened in Dallas.

The company said it has already informed affected employees about the planned closure of stores by the middle of this year. The spokesperson noted that regular, non-seasonal colleagues who are unable to be placed at a nearby Macy's store will be eligible for severance, including outplacement resources.

In November, Macy's reported a third-quarter net loss of $91 million with a sharp drop in net sales and more than 20 percent drop in comparable sales, significantly hurt by the ongoing COVID-19 pandemic.

However, digital sales grew 27 percent. The company previously withdrew its 2020 guidance due to ongoing uncertainty as a result of pandemic crisis.

Amid the coronavirus struggles, Macy's in last June said it would reduce around 3,900 corporate and management jobs.

Macy's, founded in 1858, currently operates 544 of its namesake department stores, 34 Bloomingdale's locations, 19 Bloomingdale's outlets, as well as 166 Bluemercury shops.

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