In a significant move reflecting the ongoing challenges in the retail sector, Macy’s Inc. has announced plans to close 66 stores across the United States as part of its 'Bold New Chapter' strategy. This initiative aims to shutter a total of 150 underperforming locations by the end of 2026, responding to shifting consumer preferences and the rise of e-commerce [f91880f3]. CEO Tony Spring emphasized that these closures will allow the company to concentrate on more profitable locations that offer better product assortments, thereby enhancing the overall shopping experience [f91880f3].
This announcement comes amidst a broader trend in the retail landscape, where companies like Big Lots and Party City are also facing significant closures and restructuring efforts. Big Lots recently revealed plans to close over 400 of its 900 stores following a Chapter 11 bankruptcy filing, citing a net loss of $205 million in Q1 2024 and long-term debt of $573.8 million [408c0ccb]. Similarly, Party City filed for bankruptcy in December 2024, announcing the closure of 700 stores and the layoff of approximately 16,500 employees [df6cb378].
However, the retail environment is also witnessing a contrasting trend with major retailers planning to open new stores in 2025, signaling a potential rebound. Dollar General and Dollar Tree are set to open 1,300 stores by September 30, 2025, while Walmart U.S. CEO John Furner announced plans for 150 new or converted stores over the next five years [acf07e5d]. Other retailers like Academy Sports + Outdoors, Barnes and Noble, and Costco are also expanding their footprints, with plans to open multiple new locations [acf07e5d].
Macy's latest Q3 earnings report showed a 2.4% drop in net sales to $4.7 billion, further highlighting the operational challenges faced by brick-and-mortar retailers [f91880f3]. Additionally, concerns arose when it was discovered that an employee had hidden $154 million in expenses, raising questions about the company's operational oversight [f91880f3].
As the retail environment continues to evolve, experts predict that up to 45,000 retailers could close by 2030, reflecting a significant shift in consumer behavior towards online shopping [992f3cfb]. The current wave of store closures is the highest since 2020, indicating a critical moment for the retail sector [df6cb378]. While some retailers are struggling, others are adapting their strategies to focus on enhancing customer experiences and leveraging e-commerce opportunities [15dde334].