Macy’s will close 65 stores after the holidays this year

On December 14, 2024By Littum

Macy’s is closing more stores than it originally announced earlier this year.

According to the company’s earnings report for the third quarterthe department store chain is expected to close 65 locations by the end of the year, up from the 50 locations the company said it would close by the end of the fiscal year in February.

“We now expect to close approximately 65 locations this year,” Macy’s CEO Tony Spring said in the earnings call. “Consistent with our typical cadence, closures will occur after the holidays.”

The retail giant said in February that by 2026 it planned to close 150 “unproductive” stores, or about 30% of all its locations, while prioritizing investment in 350 “go-forward” stores. Macy’s also said at the time that the move, dubbed “A Bold New Chapter,” will allow it to focus its resources and prioritize other stores.

“A Bold New Chapter serves as a powerful call to action. It challenges the status quo to create a more modern Macy’s, Inc,” Tony Spring, Macy’s CEO, said in a statement in February. “We are taking the necessary steps to rekindle relationships with our customers through enhanced shopping experiences, relevant assortments and compelling value.”

The company still plans to expand the Bloomingdale’s, Bluemercury brands

Despite the planned closure of Macy’s locations, the company says it also wants to expand Bloomingdale’s and Bluemercury by a total of 45 locations, signaling increased investment in the luxury sector.

The company earlier this year announced plans for about 15 Bloomingdale’s stores and at least 30 Bluemercury locations in the next three years. Around 30 Bluemercury stores are also set for redevelopment.

In its third-quarter earnings report, the company says it has remodeled five Bluemercury locations and opened nine new locations so far this year.

Macy’s says employee who allegedly hid $150 million in expenses had no major ‘impact’

Macy’s third-quarter earnings report also further addressed any potential impact on its financial results after an employee allegedly hid $151 million in delivery costs over a nearly three-year period.

The company stated that after it completed an independent investigation of the matter, it was determined that there was no material impact on the financial results for any historical annual or interim period.

In late November, Macy’s announced that an employee “responsible for small package delivery cost accounting intentionally made erroneous accounting entries” to conceal between $132 million to $154 million of total delivery costs from the fourth quarter of 2021 to the fiscal quarter ending November 2, according to department store chain’s press release.

Throughout the alleged conduct, Macy’s recorded about $4.36 billion in delivery costs, the company said, adding that there was no indication that “the erroneous accounting entries had any impact on the company’s cash management activities or supplier payments.”

The person accused of hiding millions of dollars is no longer employed by the company, according to the release. An independent investigation also did not identify any other employee involved in the alleged misconduct, the retailer said.

Julia is a popular reporter for USA TODAY. She has covered a variety of topics, from local businesses and government in her hometown of Miami, to technology and pop culture. You can follow her further X, formerly known as Twitter, Instagram and TikTok: @juliamariegz.

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