📉 Macy’s to Close 66 Stores in 2025
Macy’s announced it will close 66 stores in 2025. This move is part of its “Bold New Chapter” initiative, aiming to close 150 stores by 2026. Nine stores in New York and California top the list, followed by seven in Florida. Notably, the historic Philadelphia City Center store, featured in the 1987 film "Mannequin," is set to close. Macy’s plans to invest in 350 other stores while focusing on profitability in a tough retail market.
🏢 Philadelphia’s Historic Macy’s to Close
The Philadelphia flagship store, a cultural and architectural landmark, is among the closures. Fans of the rom-com “Mannequin” recognize it as a filming location. Local businesses fear its loss could reduce foot traffic in the area. Macy’s cited low profitability and declining foot traffic as key reasons for the closures. The company’s broader strategy seeks to streamline operations and focus on thriving locations.
💰 Financial Challenges Loom Large
Macy’s reported a 16% drop in stock value over the past year. Analysts at UBS warned that Macy’s has lost 25% of its market share since 2012, primarily to Amazon and off-price retailers. A hidden $151M expense error from 2021-2024 further weakened investor confidence. Macy’s revised its profit outlook in December, reflecting these struggles. Critics doubt whether the closures alone can reverse the trend.
📊 What’s Next for Macy’s?
Macy’s closures aim to reduce losses and modernize its retail presence. However, analysts question if this strategy is enough to regain market share. The rise of online shopping and competitive pricing from rivals like Amazon pose ongoing threats. Macy’s commitment to renovating its remaining stores might help, but critics suggest a more innovative approach is needed. The company’s future remains uncertain amid these challenges.
Will Macy’s closures save or sink the iconic brand?
