Macy's is planning on closing a ton of their stores, and this makes us feel sad
Uh oh. It’s time to say goodbye to one of the most major stores in the country, or, well, some of them. Macy’s recently announced plans to shut down a ton of stores—about 100, in order to switch gears a bit. It’s actually so sad considering what a role the department store plays in our lives, from the Thanksgiving parade to that fun and funky time they dumped Trump’s clothing collection (yeah, that really happened).
According to The Wall Street Journal, the shutdown results from suffering stocks (the stock is down 42% in the last year), declines in sales, and a desire to get more competitive.
“We operate in a fast-changing world,” said Macy’s Chief Executive Terry Lundgren explained. “This involves doing things differently and making tough decisions.”
It seems to have a lot to do with maintaining ground with competitors, and making sure they reverse the struggles they’re seeing in terms of sales. Considering that so many of us now solely shop online, it’s not surprising that actual, real-life stores are suffering.
Macy’s finance chief Karen Hoguet explained, “By closing weaker stores and monetizing some of our real estate where the redevelopment opportunities are significant, we will grow faster and we will produce higher return on invested capital.”
It’s sad, and scary for all those employees. Still, we’ve grown used to seeing stores shutting down left and right, from Borders to the flagship of Toys R Us to the original American Apparel. Gap made a similar move last year when they cut a huge number of stores totaling close to 200. On the bright side, at least we’re not losing Macy’s completely. And, hey, nothing could be worse than when we thought Trader Joe’s was disappearing from our lives.