It is common knowledge that many malls around the country are having difficulties, which has an effect on the stores that are housed within them and causes many of them to close their doors or even declare bankruptcy.
Well-known brands including Foot Locker, Bath & Body Works, The Body Shop, Rue21, and Express are among the merchants closing their doors. An important anchor store that is present in many malls will soon be joining this list as well.
In the following months, 150 Macy’s locations are expected to close. The business has divided its locations into “go forward” and “non-go forward” outlets. The former group will see store closures, while investments will be directed toward new items.
“As a reminder, in fiscal 2023, comp sales of Macy’s go-forward locations outperformed non-go-forward locations by approximately 500 basis points, and the four-wall adjusted EBITDA rate outperformed by approximately 950 basis points,” CEO Tony Spring said in a recent earnings call. The non-go-forward locations are underperforming the Macy’s portfolio as a whole, but as real estate assets, they are still quite valuable. The demand for these houses has been high.
Of those, 55 are scheduled to close by year’s end, with the remaining outlets following suit shortly after, according to KFI. The precise websites that would be affected are still unknown.
Spring conjectured as to the causes of this change, saying, “Our customer has become more selective, which we link to persistent macroeconomic instability and a more intricate news environment. He went on to say, “We have realigned our assortments and modified our marketing timeline to achieve a better equilibrium between value and style,” indicating that they are making changes to deal with the changing circumstances. We enhanced our marketing initiatives and offered more specialized, individualized messaging for a range of brands and categories. In addition, we minimized our involvement in markets with lower demand in favor of launching new goods and bolstering existing areas of strength.
Read Also: Violent Assault on 16-Year-Old Transgender Boy by Group of Teens in Massachusetts
The business currently owns 56 Bloomingdale’s and over 150 Bluemercury stores in addition to 519 Macy’s sites across the country.
