American retail chain Macy’s recently announced that it will close 45 stores in 2021 to focus on stores with good shopping traffic.
This is part of a plan the retailer launched in February 2020 to close 125 stores by 2023, about 20% of Macy’s total stores. At the same time, Macy’salso announced 20,000 job cuts.
A Macy’s spokesperson told Business Insider that as previously announced, Macy’s, Inc. committed to fine-tuning its store chain by focusing on existing retail locations, such as categorizing and ranking stores with good traffic.
Macy’s is expected to announce a list of closed stores on January 6 (local time).
2020 has been an unlucky year for many retailers, partly because COVID-19 forced many stores to close and consumer spending declined.
During the period from January to September 2020, the number of restaurants and retail stores that had to close their business was more than the whole of 2019 combined, including J. Crew, Neiman Marcus, and JC Penney’s.
Retail consultant Jan Kniffen told CNBC this week that about 30% of 1,000 malls will close in 2021 as a result of the COVID-19 outbreak.
Macy’s was already in a difficult situation before the impact of the COVID-19 epidemic, with sales falling in the fourth quarter of 2020 compared to the same period a year earlier.
In the third quarter of 2020, overall sales fell 20%, despite an increase in online sales.