Macy’s to close 5 stores in 2024: Locations and closing dates
In order to reduce costs, Macy’s will lay off 3.5% of its staff corresponding to 2,350 jobs, and close five stores in 2024. Here are the affected locations.
Macy’s joins the list of companies that have been forced to close some locations, after failing to adapt to the preferences and changing purchasing habits of consumers. In an effort to reduce costs and redirect its expenses to improving customer experience, Macy’s has decided to lay off 3.5% of its workforce, in addition to closing five branches in the US in 2024.
According to a copy of a memo obtained by The Wall Street Journal, the 3.5 % layoffs correspond to approximately 2,350 jobs, not counting the end of seasonal hiring during the holidays. With the release of this budget, the retail clothing company plans to invest in automation supply chains, including updating digital features in online shopping and incorporating screens to improve the visual appeal of stores.
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Macy’s to close 5 stores in 2024: Locations and closing dates
According to the memo, the layoffs will begin on Friday, Jan. 26, so the first store closures are expected to begin at the end of the month. The five Macy’s branches that will close this year are located in the following areas:
- California: Bayfair Center, San Leandro
- California: Simi Valley Town Center, Simi Valley
- Florida: Governor's Square, Tallahassee
- Hawaii: Kukui Grove Center, Lihue
- Virginia: Ballston Quarter, Arlington
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Takeover offer
Although the company has already advanced measures to reduce its operating costs, investors are still waiting for the earnings report for the Christmas season, which will be released next month and will clarify the company’s economic outlook.
Macy’s currently has a purchase offer for $5.8 billion. This shows that in the eyes of investors, the retailer is undervalued, especially its real estate portfolio. Its Herald Square property alone is valued at $3 billion, according to an estimate by JP Morgan. At the moment, Macy’s has not commented publicly on the store closures or the acquisition offer.