Macy's is shutting down another one of its 507 stores nationwide. The store is holding a big sale to clear out its stock, expected to last between eight and twelve weeks.
Macy's is closing its store in the Governor's Square Mall in Tallahassee, Florida. The exact closing date hasn't been announced, but it's likely to shut down in early spring, according to local TV station WCTV.
Macy's Long History in Mall Ends with Closure
Macy's, a key store in the mall since 1979, has undergone several changes. It first opened as Maas Brothers, became Burdine's in 1991, and was known as Burdine's-Macy's from 2003 to 2005 before becoming solely Macy's.
A spokesperson told WCTV, "Closing a store is never easy, but we're thankful for the years of serving our customers and the community."
With the upcoming closure of the Macy's in Tallahassee, the closest store for Florida residents will now be over 180 miles away in Ocala. This shutdown impacts about 40 employees working at the branch.
Local shoppers expressed disappointment upon hearing about the store's closure. Comments on social media reflect this sentiment, with one person noting, "Sad to see the demise of a once retail leader." Another shared, "I'll miss the store in Tallahassee!"
Macy's Shuts Five Stores, Plans 30 New Ones
The Macy's in Tallahassee is one of five stores closing in Macy's latest move. The company, transitioning to a new CEO, Tony Spring, is also closing stores in Arlington, Virginia; San Leandro and Simi Valley, California; and Lihue, Hawaii.
Since 2020, Macy's has shut down 100 stores, most in shopping malls. However, there's a change on the horizon. Macy's is set to open 30 smaller, new stores in 2024. Still, under Macy's name, these stores will offer a compact shopping experience outside traditional malls.
Customers can look forward to a wide range of beauty products, the latest fashion trends, and luxury items like sunglasses and jewelry. Additionally, these stores will feature new attractions such as pop-up shops and local vendor market events.
Macy's is proceeding with its plan, announced last February, to close 125 stores by 2023. The full list of affected stores is available for reference.
A Macy's spokeswoman explained to CNBC, "We're focusing on our best locations in popular A and B malls. The store closures we announced align with our strategy from February 2020. This helps us get the right balance of mall-based stores."
There are roughly 1,000 malls in the U.S., as reported by Green Street, a commercial real estate firm. Most malls are categorized as B-, C-, or D-rated, earning less per square foot than top-tier A malls. For instance, an A++ mall might make $1,000 per square foot, while a C+ mall averages about $320.
Macy's CEO Jeff Gennette has stated that while the company continues to focus on the top malls in the nation, its future growth strategy will include expanding beyond these mall locations.
Macy's recently disclosed a more than 20% drop in same-store sales for the quarter. The decrease comes as shoppers spend less on clothing and accessories in malls during the COVID-19 pandemic. While online sales rose by 27%, this increase wasn't sufficient to compensate for the reduced sales in physical stores.
Related Article: California Pizza Kitchen's Bay Area Shutdown: A Shocking Ending
