Macy’s is one of the top five apparel brands in the United States Of America. But despite its position, it has struggled through difficult times in the pandemic, greasing its way to bankruptcy. This, however, made many of its fans wonder about what is happening to Macy’s and Is Macy’s going out of business 2024?
Macy’s was founded in 1858 by Rowland Hussey Macy and became the largest department store company by retail sales in the United States by 2015.
Additionally, the company had 94,000 employees and an annual revenue of $25 billion as of January 2023 until the tragedy hit Macy’s.
So, without further ado, let’s get started on understanding what happened to Macy’s and it is really going out of business or not.
Is Macy’s Going Out Of Business 2024?
As we all know, the effects that the pandemic left, whether in the corporate world or retail industry, have led many companies to go bankrupt and even close all their operations.
And Macy’s is no exception, as since 2020, the brand has been closing many of its stores. In the fiscal 2022 reports, the company reported that its net sales had reached $8.3 billion, which is a decrease of 4.6% as compared to 2021.
However, these closures are just a part of the three-year restructuring strategy of the company announced in 2020.
The departmental store chain has been closing it stores in 2020, 2021, and 2022. It has been cutting down on unproductive stores and focusing on upgrading the stores that have been showing some growth.
Therefore, despite the store closures and decred sales, Macy’s has no plans to close its business.
According to Macy’s CEO, Jeff Gennette, the company is set to close 125 stores and cut thousands of jobs as a part of its strategy. But it is also set to open stores in other locations.
For example, last year, during the fall, the company opened three stores in Missouri, Illinois, and Georgia.
What Happened to Macy’s?
Macy’s, like every other company, has been hit by the pandemic and inflation, resulting in plummeting sales. So, the company has been cutting costs and re-aligning its strategies with the slowing growth of the U.S. economy.
However, this is not the story of Macy’s only; many companies are also struggling to align with the impacts of consumer discretionary spending on their operations.
Another season for the downfall is the consumers’ changing preferences. Consumers have been rapidly shifting from shopping in physical stores to online retailers. And as a result, the company faced an abundance of inventory in 2022.
However, Macy’s handled the situation well. It handled the inventory pile-up by cutting the cost of seasonal goods, private labels, and pandemic-related merchandise.
The List Of Macy’s Closed Locations
Macy’s plan called the Polaris turnaround plan, involves store closures and investment in its digital operations. Therefore, it has closed many of its stores since 2020.
Here is the list of stores that Macy’s has already closed in January:
Baldwin Hills Crenshaw Plaza in Los Angeles
Foothills Mall in Fort Collins
Windward Mall In Oahu
Lake Forest Mall in Gaithersburg
Top Shareholders Of Macy’s
|Vanguard Group Inc
|State Street Corporation
|Arrowstreet Capital, Limited Partnership
|Lsv Asset Management
|Dimensional Fund Advisors LP
|Newport Trust Company, LLC
|AQR Capital Management, LLC
Top Mutual Fund Holders Of Macy’s
|iShares Core S&P Midcap ETF
|Vanguard Total Stock Market Index Fund
|Vanguard Fenway Funds-Equity Income Fund
|Vanguard Extended Market Index Fund
|Vanguard Small-Cap Index Fund
|Vanguard Small Cap Value Index Fund
|DFA U.S. Targeted Value Portfolio
|Avantis U.S. Small Cap Value ETF
What Is The Future Of Macy’s?
Macy’s has been through a difficult time since the pandemic. However, the company is not going out of business but is set to apply new strategies to rise again.
In this regard, the departmental store chain has come up with a strategy called Polarid Turnaround, which involves closing its underperforming stores.
The Polarid strategy has helped the company to stabilize its profits through:
- Resetting cost base
- Bring quality fashion
- Optimizing store profiles
- Stimulate digital growth
- Strengthening the customer relationship
Moreover, the departmental store chain has been cutting its exposure to traditional shopping. It has been experimenting with opening smaller, trendier stores known as Market by Macy’s.
According to a spokesperson of Macy’s, the consumers chose to shop through a combination of physical stores in malls, off-malls smaller format, digital shopping, and off-price stores.
Now the news that is Arkhouse Management, a real estate management firm, and Brigade Capital Management, a global assets manager, submitted the bid to buy Macy’s for $5.8 billion.
Macy’s has been closing many of its stores, which has made its fans wonder: Is Macy’s going out of business 2024?
However, the story is totally different from what people are thinking. Also, it should be noted that if a company is closing its stores, no matter how many, that doesn’t mean that it is going out of business.
Who owns Macy's?
Macy’s was acquired by the holding company Federation Department Stores in 1994, and since then, it has been the sister brand to Bloomingdale’s.
How many stores does Macy's have in the U.S.?
Macy’s currently has 508 stores operating in the U.S. Its flagship store is located at Herald Square, New York borough of Manhattan.
What is the new name of Macy's?
After its acquisition by Federation Department Stores Inc., it changed its name to Macy’s Inc.