The Iconic Macy's Store That's Closing After 150 Years

It is no secret anymore that retail stores are involved in a life or death struggle. The Coronavirus pandemic created an existential crisis for the retail industry that has never been seen before. Many large and historic companies like Sears have declared bankrupty, others including popular apparel brand Quicksilver are shells of themselves, and others never recovered even five years later.

Covid-19 restrictions imposed a dramatic shopping shift on large segments of the American population. This has forced huge retail outfits to grapple with how to adapt to the new world of e-commerce as customers now routinely shop from home. One of America's largest department stores, Macy's, is the latest retailer that finds itself out of step with consumers' rapidly evolving shopping habits.

The iconic department store chain has been a cornerstone of the American shopping experience for over 150 years. It is an anchor in malls across the country. Yet thanks to financial challenges, it has decided to permanently shutter 150 stores over the coming two years under what the corporation labels its Bold New Chapter strategy.

Macy's problems do not exist in a vacuum. Department stores have struggled over the last decade in general, but the trend has only accelerated since 2020. Consumers no longer enjoy the shopping in person experience at a mall. Instead they look forward to buying online and having products delivered to their door steps. Stores like Macy's are having to completely rethink their strategies as a result.

In 2023, Macy's reported that its net sales had plunged 5.5% to $23.1 billion. The store closure announcements have followed, and among the iconic stores that it will shutter for good is the Broadway Plaza, Los Angeles location. This historic store has been an anchor of the City of Angels for many decades. UnioRayo reports that many city residents consider this store closing to be the end of a retail era.

The store closures will create a buying opportunity for Macy's fans. This corporation is now engaging in sales of as much as 70% on various items. Clearance signs decorating the windows of many impacted locations are already appearing. Macy's plans to liquidate its closing stores' merchandise as part of its Bold New Chapter revamping strategy.

Macy's has stated that the pending store shutterings are a necessary step in its restructuring strategy. These will help it to concentrate on marketing its enhanced digital presence online. As part of these plans, Macy's confirmed its intentions to close down 66 of its outlets throughout 22 states in 2025.

The company announced in a recent news release in January that "This plan is designed to return the company to sustainable, profitable sales growth which includes closing approximately 150 underproductive stores over a three-year period while investing in its 350 go-forward Macy's locations through fiscal 2026." The strategy has involved investing heavily into pilot stores the company calls its First 50. So far the results have been encouraging. The First 50 stores have posted sales increases during their first three quarters.

The list of store shutterings will hit California, Florida, and New York especially hard. Nine Macy's are closing in California, eight are shutting down across Florida, and nine are disappearing throughout New York state. The company reiterated its commitment to maintaining its Herald Square flagship location in New York City. MSN reported CEO and Chairman Tony Spring of Macy's statement that, "As part of our Bold New Chapter strategy, we are closing underproductive Macy's stores to allow us to focus our resources and prioritize investments in our go-forward stores, where customers are already responding positively to better product offerings and elevated service."