Macy Stores Closing, Why Did Macy Close The 150 Stores or 30% Of Its Locations?

Macy’s, an iconic department store operator, announced an important retooling in their business strategy that involves closing some stores and increasing luxury appeal of their brand. This change follows reported fourth quarter losses along with decreases in sales volume that forced an introspective assessment of Macy’s operational model.

What Lead to Macy’s Store Closures?

Retail giant Wal-Mart recently unveiled plans to close approximately 150 of their name brand stores within three years, beginning this month by closing 50. This move represents a strategic effort by Wal-Mart to eliminate less productive locations that occupy 25% of total square footage but account for less than 10% of overall sales; such closures help streamline operations and direct resources towards more lucrative areas of operation.

How Will Macy’s Improve Its Current Stores?

Macy’s is adapting its remaining 350 stores in response to an evolving retail landscape by expanding and upgrading store interiors, adding more salespeople in key departments (fitting areas and shoe sections), upgrading visual displays (with additional use of mannequins for added visual impact), as well as revamping visual displays to provide customers with more appealing shopping environments.

What Are the Implications of Macy’s Transition Toward Luxury Goods??

Macy’s strategy features an important shift toward luxury retailing, a sector which has shown consistent resilience and growth despite other retail segments’ downward trends. Macy plans on opening 15 new Bloomingdale’s stores and 30 Bluemercury luxury cosmetics locations – this shows their confidence in tapping into luxury shoppers’ higher spending power and is indicative of Macy’s belief in its market viability and viability.

Why Are Macy’s Emphasizing Luxury Now?

Macy’s move towards luxury comes during a time of unprecedented retail challenges caused by changing consumer behaviors and the impact of e-commerce. By emphasizing luxury goods, they hope to appeal to an audience less price-sensitive while encouraging in-store purchasing of higher end items – part of an emerging trend among companies who seek ways to differentiate themselves and capture niche markets to remain competitive in an otherwise volatile marketplace.

Which Stores Will Close in 2019?

Macy’s has yet to disclose an exhaustive list of stores scheduled for closure; however, San Francisco’s Union Square location will soon join those targeted for shutdown. Macy’s has made clear their strategic considerations behind closing these particular locations: they want to divest from locations which no longer align with their new business model or fail to meet performance benchmarks.

How are Residents Responding?

An announcement of store closures at prominent San Francisco locations such as Union Square has evoked strong reactions from residents and leaders in local communities and states alike. San Francisco Mayor London Breed confirmed Macy’s plans, showing both his disappointment and understanding toward changing retail landscape and decision-making process; community reactions demonstrate just how drastic such closures have an effect on local economies, employment levels and urban retail scenes.

What Does This Indicate for Macy?

Macy’s strategic overhaul reflects a wider shift within retail towards specialization, luxury and enhanced customer experience. By closing underperforming stores and investing in luxury and service offerings, they aim to reposition themselves within an increasingly competitive retail market. Of course, any transformation involves significant risks; this transformation would necessitate alteration to operations, branding and market positioning processes as well as major shifts within operations, branding and positioning strategies, but should it prove successful it could pave way to revitalizing Macy’s as it will better reflect current market trends as well as consumer preferences.

Macy’s strategic shift represents a bold response to an ever-evolving retail environment. By closing less productive stores and shifting focus toward luxury experiences and customer affluence, they hope to redefine their brand image while reaching out to an affluent customer base. Though their future remains unknowable, this strategy could well pave a path for continued relevance and profitability in an ever-evolving retail landscape.

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