Macy’s Inc. (NYSE:M) will close around 19 of its location in the next few months as the company continues to shutter more stores. Officials have, however, not confirmed the stores they are shuttering.
Macy’s to over a dozen stores
The company indicated that it continues to review its store portfolio regularly, and it plans to provide an update to investors of February 5. In 2016 Macy’s announced plans to close to 100 of its outlets and since it’s has been closing them as leases expire. A company spokesman could not confirm whether the planned closure of over a dozen stores as part of the 100 earmarked to shutter in 2016. The company had indicated that it could close the stores after it experienced a decline in sales for six consecutive years.
Some of the stores that the company will close include Macon Mall in Georgia, Westfield Meriden Mall in Connecticut, Lewiston Centre Mall in Indiana, The Centre at Salisbury in Maryland, University mall in Illinois, Ohio Valley Mall, Northgate mall and Stow-Kent Plaza all in Ohio, Towne Square in Kentucky, and Rivergate Mall in Tennessee among others.
Online shopping killing brick and motor locations
On November 2, the company released its Q3 earnings report, which saw its same-store sales drop significantly in two years. The comp[any also slashed its full-year guidance citing disappointing sales in the fall season as consumers shift to online shopping away from physical locations.
Jeff Gennette, the CEO, and Chairman stated that after seven sequential quarters of growth in comparable sales, they saw a deceleration in Q3 sales. He added that although they expected the deceleration, it was nonetheless steeper than anticipated.
In recent years traditional brick and motor retailers have suffered following the proliferation of online stores. As a result, most companies that rely on brick and motor stores have been pushed to the edge, with most closing some of their retail locations. Declining consumer sentiment and the growth of online shopping, coupled with a weakening economy, has been the reason why some of the largest retailers have been shuttering their retail locations.