Pedestrians walk by a Macy’s store that is set to close on Feb. 27, 2024 in San Francisco, California. Macy’s announced plans to shutter 150 underperforming stores across the United States, including their iconic flagship store in San Francisco’s Union Square. NEW YORK — Macy’s will close 150 unproductive namesake stores over the next three years including 50 by year-end, the department store operator said Tuesday after posting a fourth-quarter loss and declining sales.
Macy’s did not provide a list of planned closures, but San Francisco’s Mayor, London Breed, confirmed that the retailer’s sprawling store in the city’s Union Square downtown shopping district would be shuttered. While not among the first 50 to be closed, Breed said she was told by Macy’s that it is seeking a buyer for the San Francisco property.
The Macy’s store at Union Square is seen in San Francisco, Tuesday, Feb. 27, 2024. Macy’s will close iconic store, Mayor London Breed says. “It’s hard to think of Macy’s not being part of our city anymore,” she said. Yet Macy’s is still cutting jobs to lower costs. In January, Macy’s said it would trim about 3.5% of its total workforce, roughly 2,350 employees, and close five locations. Spring told The Associated Press during a phone interview that he didn’t have an estimated number of workers impacted since the closures will happen over a three-year period.
The strategy comes after Macy’s surveyed 60,000 customers about what they liked and disliked about the shopping experience. What they found was that customers wanted less cluttered stores and more service. Macy’s also is overhauling its private brands, which help stores stand out and also have better profit margins. The company is focusing on upgrading the first group of 50 Macy’s namesake stores, which will act as “incubators,” Spring told The AP.
At its namesake stores, sales at stores opened at least a year fell 6% including its licensed business during the latest quarter, while the metric at Bloomingdale’s was down 1.5%.