Back in March, we reported on at least 2,200 retail locations closing across America. Now, Macy’s has announced that its previous 36 stores slated to close this year has gone up to 100. While the department store achieved record sales during their “Black Friday in July” event, sales declined by about 5% in the second quarter overall. To close the stores, it will cost almost $1 billion, but Macy’s says the long-term costs outweigh the short-term loss. “This potential sales loss is lower than the projected volume of these 100 stores roughly due to our ability to retain some of the sales in other stores as well as on Macys.com,” chief financial officer Karen Hoguet said in a Seeking Alpha transcript. So what does this mean for consumers?
The locations that are closing haven’t been disclosed yet, so shoppers should watch for local announcements about their nearby stores. For the stores that will remain open, Macy’s will be redefining the company’s values and direction. If you’ve got a store that’s not closing, look for more brand shops opening within it and possibly a makeover, since Macy’s intends to use the money saved to invest in their established and high-performing brick-and-mortar locations and their online presence.
What Will This Mean for Macy’s Online Deals?
We spoke with our deal hunters about what they think you can expect from Macy’s. FatWallet Deal Hunter Amanda Petrow had this to say about shopping Macy’s deals:
Macy’s has a lot of one-day, weekend or pop-up sales at least once a month, usually with a coupon to take an extra 10-20% off select departments, with the 20% off normally applying to clearance items. Within the same sales, they also have generic specials, such as up to 50% off handbags, 30% off dresses, 2 for $19.99 bras and so on. Sometimes with the sales, they also lower their free shipping threshold from orders over $99 to orders over $50 or $25.”
With Macy’s working to compete with brands like Amazon and jet.com, they know they need to step it up. “We are benefiting from new releases on our mobile apps and other technology improvements that are driving increases in conversion,” Hoguet said. “Our investments are focused on removing points of friction.” Look for stronger online campaigns and better online sales in the future, especially after the “Black Friday in July” online sale success.
You can set a deal alert for Macy’s on our homepage to get future sales and deals sent straight to your inbox. We recommend keeping a close eye on clearance sales at your local Macy’s, but it’s possible the closing stores could just shift inventory to other locations. If you’re afraid this means bad things overall for Macy’s, don’t fear: their stock has risen 17% since the announcement, so investors are clearly unworried about the company’s prospects.
UPDATE: Macy’s national spokesperson, Elina Kazan, has stated that the majority of targeted stores to be closed will be announced in January 2017. “For those remaining locations, it will be sometime later–not yet determined when.”