Macys has way to many doors across the country. Many of these doors do less than $10,000,000. Would it not make sense to close these unproductive, unprofitable, and under stocked doors, in dead malls, and fuel the $40,000,000 plus doors? Do we need a Macy's in the middle of nothing?
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There are some stores that may not be profitable but are still very important for the brand. Especially in markets with a single store, the store itself may not make a profit but they need a physical presence to boost online sales and to compete with Belk/Dillard's/etc. You can bet that the bean counters have already shuttered most of the locations that do not benefit the company.
None of us have any idea which stores are profitable at the store level. Only corporate knows. There are so many expenses related to running the store as well as lease agreements and other fixed expenses. Just because a store is generating good sales does not mean it is profitable. Each store stands on it's own.
They are silent fulfilment centers slash stores.
Closing a store often affects online sales in the surrounding area, too.
Fyi… just because a store only does 10m, does not mean its not profitable…. Volume and profit are two different things
I think it’s a matter of time that we shutter at least a dozen stores! There are definitely some Macy’s locations I can think of that are in shambles. I don’t know how they even stay open. Half of the floor space is empty and the store is devoid of any customers. I think that they should prioritize closing locations that are in completely dead malls/ demolished malls or in an area that is way too oversaturated with retail. Exton Square PA, Fashion Square in Orlando, Livingston Mall NJ, Burnsville MN, Metro North Kansas City to name a few.
Each Macy's location across the country has a different lease agreement with the mall it occupies and when it ends. Also, it depends if Macy's owns the building outright vs leasing the space.