Macy’s adds to list of store closures, says it will close 65 this year

Macy’s stated it should shut 65 shops this yr, a rise from the 50 places it previously announced it would shutter by the top of the fiscal yr. The closures are a part of its plan to remove roughly 150 underperforming shops over the subsequent three years.

The division retailer chain made the replace public in its third quarter earnings name Wednesday.

“We now count on to shut roughly 65 places this yr,” Macy’s CEO Tony Spring stated on the decision. “Consistent with our typical cadence, closures will happen submit vacation.

Macy’s had delayed reporting its third-quarter earnings after an worker hid up to $151 million in expenses related to delivering small packages. The retailer, which additionally owns Bloomingdale’s and Bluemercury, final month stated it found the accounting subject on certainly one of its accrual accounts whereas getting ready its quarterly monetary statements. 

The corporate revealed new particulars on the incident Wednesday, saying that an unbiased investigation discovered that “a single worker with duty for small package deal supply expense accounting deliberately made inaccurate accounting accrual entries and falsified underlying documentation,” in accordance with a Securities and Trade Fee submitting. 

Adrian Mitchel, chief working officer and chief monetary officer at Macy’s, stated the error “was not theft” and that “there was no influence to revenues, and there was no influence to money or inventories as all distributors had been absolutely paid.”

The corporate stated is overhauling its controls over monetary reporting. 

Shops struggling

Macy’s is not alone in shuttering brick-and-mortar places. The retailer’s acceleration of store closures comes as malls battle, with fewer consumers visiting malls and extra People making purchases on-line. 

U.S. retailers have introduced greater than 7,100 retailer closures by the top of November 2024. That represents a 69% leap from the identical time final yr, in accordance with current information from analysis agency CoreSight. Forty-five retailers have filed for chapter safety up to now this yr, in contrast with 25 retail bankruptcies in all of 2023, the report discovered. 

Macy’s, in the meantime, is betting on the success of its different manufacturers, Bloomingdale’s and Bluemercury. It plans to open 15 Bloomingdale’s shops and 30 Bluemercury places over the subsequent three years, whereas additionally reworking about 30 present Bluemercury shops, the corporate stated.

Macy’s inventory has dropped roughly 20% over the previous yr.