Macy's to close more than 30 stores in 2021
New York-based department store retailer Macy’s, Inc. revealed on Wednesday that it will permanently shutter a further 37 locations this year, including 36 namesake stores and one Bloomingdale’s location.
According to multiple reports, the company said that many of the stores will begin liquidation next week, with the process expected to take between eight and 12 weeks. Another nine stores have already been closed since the beginning of the year.
This round of store closures is the next stage in a three-year strategy announced by Macy’s in February of last year, which will see the company close approximately 125 of its least productive store locations. Under the strategy, the retailer already closed some 30 stores in 2020, ending the year with around 540 Macy's locations.
The plan, which will also see Macy’s redirect investments into its online and mobile capabilities, is expected to save the company a total of around $1.5 billion over the course of three years.
In a statement cited by CBS, a Macy’s spokesperson said that the company intends to focus on high-traffic locations in line with its commitment “to rightsizing our store fleet.”
“To that end, we announced several store closures today that align to the guidance we provided in February 2020,” the company explained. "These closures bring us closer to achieving the right mix of mall-based stores.”
In the third quarter ended October 31, 2020, Macy’s reported $91 million in losses, compared to income of $2 million in the same period in the previous year. The company’s revenue for the quarter was $4 billion, down from $5.1 billion in the prior-year period.
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