Macy's Inc. has publicly announced plans to shut down 66 of its retail stores across the United States within this year, with Michigan seeing closures at four locations. Among the affected stores are those at Oakland Mall in Troy, Lakeside Mall in Sterling Heights, Grand Traverse Mall in Traverse City, and the Genesee Valley Center in Flint. The closings, part of a broader strategy to refine the company's brick-and-mortar presence, are slated to occur in the coming weeks, predominantly in the first quarter of 2025.
This consolidation effort aims to streamline operations, with Macy's striving to "return the company to sustainable, profitable sales growth," as delineated in a broader multi-year plan. WZZM 13 reported that the closure of these stores is a calculated maneuver to wind down approximately 150 "underproductive stores" over the next three years. Despite these closures, Macy's intends to not only maintain but to robustly invest in 350 of its remaining locations through fiscal year 2026.
Following the announcement, Tony Spring, Macy's chairman and chief executive officer, addressed the closures, stating, per MLive, "Closing any store is never easy, but 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."
The pivot towards a leaner storefront lineup comes on the heels of an industry-wide trend of store closures and bankruptcies within the retail sector, with over 7,100 stores shuttered in 2024 alone, marking a substantial 69% increase from the prior year, as per CBS News Detroit. Such numbers reflect a challenging landscape for traditional retailers, with household names like Family Dollar and CVS Health also making significant cuts. Meanwhile, Macy's is endeavoring to replicate the success seen at 50 pilot stores, which, according to the company, have enjoyed sales growth for three consecutive quarters.
