Friday, August 12, 2016

Macy's to Shutter 100 Stores, Atlanta Stores Likely to be Included

Macy's likely to disappear from more metro Atlanta malls 
Department store announces new store closures

Cincinnati-based Macy's announced yesterday plans to close 100 of its Macy's department stores by early next year.  A closure list has not yet been made public but it's likely that Georgia's stores will be affected.  Much like last year's 36 store closures, Macy's will likely close most of the affected stores after the busy holiday shopping season.  The longtime Rich's turned Macy's store at North DeKalb Mall was one of the 36 stores that previously closed.

(The former Macy's at North DeKalb Mall continues to sit vacant and idle as a deal with Costco Wholesale remains "in the works" but not complete.)

Macy’s operates 728 stores in the U.S. and the closures will amount to about 15 percent of its domestic locations. Macy’s said it will retain operations in 49 of the Top 50 U.S. retail markets. (The release did not specify in which top market it is not represented.)

Macy's stores likely to be considered for closure in metro Atlanta include those at Greenbriar Mall, South DeKalb Mall, Gwinnett Place Mall and The Mall at Stonecrest.  The Macy's at Northlake Mall is not likely to close entirely but is likely to shrink is size following what is expected to be a complete overhaul by new mall owner ATR Corinth.  (Kohl's closed at Northlake Mall earlier this year.)

Nearly all of the stores to be closed are cash flow positive today, but their volume and profitability in most cases have been declining steadily in recent years,” Macy’s President Jeff Gennette said. “We recognize that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand. We decided to close a larger number of stores proactively so we can invest in a winning customer experience in our most productive and highest-potential locations, as well as invest in growth sooner and more aggressively in digital and mobile.”

Macy’s said it will look to capitalize on the value of its expansive real estate holdings, with many of the stores destined for closure being worth more to the company as real estate [to be sold] than as retail operations.

Macy's introduced "Macy's Backstage" earlier this year in an attempt to capture more cost-conscious consumers.  The Backstage concept attempts to take cues from sibling concept "Bloomingdale's - The Outlet Store," launched in 2010.   Retail analysts have largely panned the new concept with many saying it fails to entice consumers and offers little to differentiate itself from other similar stores. To date there are 16 Backstage stores, 11 of them in the northeast, in New York, Connecticut,  and New Jersey.  There are currently no Backstage stores (or Bloomingdale's Outlets) in metro Atlanta, but that may change.

Recent Backstage stores, including the three that recently opened in Mesquite, San Antonio, and Fort Worth, Texas, are all located within existing Macy's stores in malls.

"We have to make stores more productive — all of us box stores," Macy's CEO Terry Lundgren told CNBC earlier this year. "Customers buying online have got to find more reasons to visit."

Macy's and many other big box retailers have been hit hard by the likes of Amazon and eBay as consumers often browse in-store but make purchases from other online merchants.

Lundgren, who has been at the company's helm since 2003, will step down as CEO next year. Jeff Gennette, 55, who was elected President of Macy's in 2014, will assume the CEO position during the first quarter. Lundgren, 64, will continue as executive chairman and work alongside Gennette for an undetermined amount of time.

Macy’s reported its sales in the second quarter were down nearly 4 percent to $5.87 billion compared to the same period last year.

What local Macy's do you think will close?  What would you like to see open in place of would-be Macy's closures in metro Atlanta?  Have you been to a "Macy's Backstage?"

Please share your thoughts below.


Anonymous said...

Macy’s reported its sales in the second quarter were down nearly 4 percent to $5.87 billion compared to the same period last year. Third quarter 2016 will be devastating. Big box department stores are dying, however Macy's has politically inflicted grave wounds onto their company it will never be a able to heal from.

Jonathan said...

The one major market that Macys is not in and has never been in is Jacksonville, FL

Ham said...

Quite honesty I could see all the stores mentioned closing and who knows maybe even more. Macy’s like many other retailers have expanded too much and basically cheapened their brand. I believe there is still a market for department stores, but they need to seek ways to provide a unique and value added shopping experience. Just like there are too many malls there are too many big box retailers, but developers with the approval of our political leaders keep cutting down trees and building more boxes. I applaud projects like the Ponce City Market, Suburban Plaza and other redevelopment of outdated facilities. Maybe we can see something happen at North Lake, North DeKalb and maybe Gwinnett Place.

Coolio said...

Close em all, they don't add to the community really. If they close them, they should also consider closing the associated malls and rebuilding them.

Department stores should remake themselves into being a destination for shopping, one that means a customer doesn't have to set foot inside of the mall. They should reduce the size of the women's departments, add bistros and other food outlets smack dab in the middle of the store (so that you have to pass the clothes and other offerings to get there -- not near entrances), maybe add more fun things like movies, indoor putt putt golf, games of skill that earn you discounts on items for sale, etc. Kinda like when Microsoft started incorporating a bunch of their vendor's offerings into their operating systems (Netscape, we still miss you! kinda)

This is what they should be asking themselves: how do we get people AND keep them inside of the stores? Is this really rocket science? I feel like with 2 minutes of thought I could solve the problems that a boardroom of highly qualified idiots couldn't come up with.

Anonymous said...

I agree with Coolio. Millennials are into Experiences. Going to Rich's (before Macy's) and many other traditional department stores used to be an Event. Concierge, personal shoppers, cafes, chocolatiers, wine shoppes, stationers, bridal boutiques, salons, travel, alterations - tailoring, etc ... Those of us in the Boomer and Gen demographic remember those days fondly. If traditional department stores are going to survive, they have to find a way to come full circle into what they once were or elove to something to fit into today's lifestyles.

Yes online shopping is the future. However apparel is something, that consumers like to try on, feel the fabric, see the quality, and even have it altered on premises if need be. Of course the quality of clothing would need to return to those days gone by as well.

Class, grace and style are sorely lacking in this country. Politics and social agendas are silently driving customers away even more swiftly. The media can't hide the real facts behind Macy's downfall.

Brionna Richards said...

Macy's at Stonecrest and South DeKalb are actually always busy, especially on the weekends. Gwinnet Place is a no brainer. Why it took so long is the question. How is it that Sears is still alive???

Tattyplatypus said...

I see your point and it's a good one but Macy's primary demographic is women consumers. The middle of the stores, what is called the center core, primarily houses the jewelry and cosmetics departments which are (typically) revenue producing depts. That said, it's my opinion that Macy's should expand the women's casual wear dept. (known as RTW) and the juniors dept. I worked through a Macy's liquidation earlier this year in New York State and the main reason why that store closed is that it simply didn't have a high enough income bracket to sustain its business. Plus, the store lease was going up and the store just didn't generate enough revenue to justify the increase in rent.

Stacy said...

I shop regularly at Macy's, because I have luck finding clothes there, but the service is atrocious. It can be hard to find someone to take your money and pay, and rarely do I get a smile. They must not treat their employees well.

Anonymous said...

Busy with shoppers and or shoplifters, is not the same as sales purchases with lots of bags in hand.

Anonymous said...

Wealthy immigrants buying land and real estate don't have the money to buy clothes at Macy's or are they just here to hide their money offshore from foreign government where they live wealthy immigrants don't shop at Macy and poor immigrants that use US government assistance so basically the new America we are importing along with clothes from other countries have no money to spend in US. Fine US I will take my money to Turks Caicos and live in paradise this country is losing economic and politic power importing poetry and cheap clothing selling land to foreigners that spit on US.

Anonymous said...

I hope Northlake stays open. Even though it's not a nice Macy's we need places to shop on this side of town. Lenox and Perimeter are so upscale. Need a decent middle of the road department store.

The Penneys at Northlake is a mess. It was an awesome store up until a few years ago when the corporate management messed it up. Not much to say about Sears.

Anonymous said...

I just bought new mattresses at Macy's but other than that - I never really go in there. The Perimeter Dillards and Von Maur are simply nicer stores than Macy's (and of course Nordstrom is too but I realize it is a much higher price point). There just isn't much reason to go to Macy's for clothing anymore, unless you are in NYC....that store is impressive.

Anonymous said...

Stonecrest, South Dekalb, and Greenbriar will close due to shoplifting losses alone. Those demographics just don't lend themselves to successful upscale stores.

Anonymous said...

" Those demographics just don't lend themselves to successful upscasle stores?"

..and what does " Those demographics " suppose to mean?

Funny how you said that South DeKalb will close because of THOSE DEMOGRAPHICS. North a non Black community closed while South DeKalb ,Greenbriar and Stonecrest did.

Just like one of the posters mentioned, I've been to all three of these malls several times and it's loaded with shoppers..especially on the weekends. Before the North DeKalb store..with the exception of the weekends..I barely seen shoppers in that Macy's.

FYI..The South DeKalb Macy's has been in South DeKalb for 40 plus years and it still going sting.Same goes for Stone crest been there for 15 plus years. Yes..the occasional problems may take place at those malls but no more than those " upscale" malls like Perimeter,Lenox or North point malls..especially Lenox and Perimeter. You hear more about thefts, robberies and carjackings taking place there than any mall in Georgia..South DeKalb and Stone crest included.Don't believe me..look at past media reports about.Several weeks ago, a woman was robbed there..but that stuff only suppose to happen at Stonecrest,Greenbriar and South DeKalb malls?

Anonymous said...

^^ Demographics = people that don't have real MONEY to spend. THOSE DEMOGRAPHICS don't possess enough GREEN aka money. THOSE DEMOGRAPHICS spend pretend money they don't really have or spend it to FAKE it and they make it. The media likes to stir the pot on crime so if you want hard core data to prove your point is in FACT WRONG then you'll have to dig deep. The government statistics are also skewed and improperly collected on crime. WAKE UP your upscale car says nothing about you except that you don't spend money wisely and when people look at you they are thing that dude is BROKE but he thinks he looks good. Those shoppers you see are in DEBT. WAKE UP pretenders.

The Anti-Gnostic said...

Ironically, the only time I ever go to a department store, it is always Macy's. Good brands.

And the "DEMOGRAPHICS" has a point which I hope Eli will let me bring up: white shoppers are withdrawing from public spaces. They are ordering online and going to specialty shops in their gentrified and suburban redoubts. This is reality.

Anonymous said...

Why are white shoppers withdrawing from public spaces? Maybe they are just not shopping because they like to invest and save money instead of shop. Personally I just find customer service at most places absolutely horrible, complain to management and they just don't care. The customer is not always right and dishonest customers make it bad for the good ones to be treated better. Our new society has pretty much turned into a bunch of entitled, self absorbed, uncivilized behaved people. Clash of cultures in the US where no one wants to assimilate leads to a poor and uneducated country. So yes I can see why white people want to stay in their enclaves of civility. The only melting pot in the US is a restaurant