ALBANY — Two local Macy’s locations survived the department store chain’s latest cut to slash over 100 of its storefronts nationwide.
The nation’s largest department store chain released a list of 35 storefronts scheduled to close by the end of the quarter. Another location under it’s Bloomingdale’s flag in Santa Monica, California[1] is also slated to close.
Macy’s announced last February its intention to shutter 125 shopping mall stores as part of a three-year plan to stabilize and grow profits. Jeff Gennette, chairman and CEO of Macy’s, Inc., told investors the company will work to “lower cost” and “reduce duplicative work” over the next three years.
The strategy included the closure of its San Francisco, downtown Cincinnati and Lorain, Ohio offices, too.
Macy’s completed an aggressive evaluation of its fleet of stores, including projected profitability of each location based on consumer trends and demographics. Stores identified as underperforming were to be closed. The stores slated to close represent approximately $1.4 billion in annual sales.
The chain’s new strategy addresses four components; strengthening customer relationships, curating quality fashion, accelerating digital growth and optimizing store portfolio. Part of that strategy was unveiled at Crossgates Mall a little over a year ago.
The Crossgates Mall anchor store went through a noticeable change in late 2019 as it opened its newest Macy’s Backstage. The 14,500-square-foot area within the store’s first floor offers discount products, many of which line the aisle leading up to a cash register.
Gennette’s announcement called the success of Macy’s Backstage as one of the chain’s “highlights.” The company plans to open an additional 50 Backstage store-within-store locations this year with an additional seven freestanding, off-mall Backstage stores.
Sears vacated its Colonie Center location in September 2017. Its departure left behind Macy’s, Boscov’s, LL Bean and REI as the mall’s remaining anchor stores. Sears’ downfall was just further proof that the most recognizable brands are not too large to fail as brick-and-mortar stores fell victim to online sales. According to Forbes, online sales outpaced physical storefronts $261.9 billion to $179.9 billion in 2017.
Macy’s has continually addressed decreased sales in recent years. It recently announced the phase out of fur sales, and announced a rental service at Bloomingdale’s, both to attract more millennial customers.
