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Macy\u2019s, like other major department stores, has pared down its store footprint over the years. Former CEO Jeff Gennette early last year said the company had closed 170 locations since 2016 and was in the \u201cfinal stretch\u201d of shuttering stores. But at the beginning of this year, all of that changed.\u00a0<\/p>\n
Macy\u2019s announced five more anchor closures\u00a0alongside a 3.5% workforce reduction in January. Then a month later, the department store said it would close 150 more locations over the next three years, with 50 closing in 2024 alone. One of the stores slated for closure this year was a fixture of the Ballston Quarter mall in Arlington, Virginia. Here\u2019s a look at its final weeks in business.<\/p>\n Cara Salpini\/Retail Dive<\/p>\n \u00a0<\/p>\n<\/figcaption><\/figure>\n Macy\u2019s Ballston location, now closed, sat on a popular street surrounded by a slew of dining options, including Ted\u2019s Bulletin, Shake Shack and True Food Kitchen. The mall features a Regal movie theater, an action entertainment experience called \u201c5 Wits,\u201d a CVS, a Onelife Fitness and even more dining options.<\/p>\n Cara Salpini\/Retail Dive<\/p>\n \u00a0<\/p>\n<\/figcaption><\/figure>\n As the Macy\u2019s prepared to shutter, the department store\u2019s multiple entrances all showed easily visible store closing signs. People advertising the closeout sales also stood on nearby street corners for hours at a time, holding signs detailing the depth of discounts, which spanned all three floors at first and slowly condensed as inventory dwindled.\u00a0<\/p>\n Macy’s was careful to specify in stores that only the Ballston location was closing. Now,\u00a0though, dozens more will shutter in the year ahead as the department store raises the bar on go-forward locations. CEO Tony Spring, who took over in February, told analysts later that month that even cash-positive stores will be closed if they\u2019re underperforming.<\/p>\n Cara Salpini\/Retail Dive<\/p>\n \u00a0<\/p>\n<\/figcaption><\/figure>\n In March, the executive told an audience at Shoptalk that Macy\u2019s simply has \u201ctoo many locations that were built for a different era\u201d and said the company had \u201cno choice\u201d but to close stores in order to thrive. Spring added that the stores slated for closure in the next three years make up 25% of the department store\u2019s square footage but represent less than 10% of its sales.<\/p>\n The end goal is a fleet of 350 core Macy\u2019s stores, with continued investment in some of the department store\u2019s smaller formats. Spring said in February that Macy\u2019s plans to open 30 more small formats in the next two years, including 12 this year.<\/p>\n Meanwhile, many of its traditional department store formats will begin winding down.<\/p>\n As the Macy\u2019s in Ballston shuttered, some displays were well-stocked, while others were already sparsely filled just a week after announcing the closure. Many racks were left empty as product was purchased, even as boxes of inventory cluttered the selling floor. In certain areas, extra stock usually stored in a back room was sitting out in boxes on wood pallets or stacked up on metal shelving units.<\/p>\n \u00a0<\/p>\n<\/figcaption><\/figure>\n \u00a0<\/p>\n Cara Salpini\/Retail Dive<\/p>\n<\/figcaption> Most employees were either manning cash registers or unloading inventory onto shelves. All sales at the store were final as of Jan. 22, and it was accepting returns up until Feb. 20.\u00a0A few more employees were stationed behind some of the department store\u2019s beauty and jewelry kiosks.<\/p>\n While jewelry was heavily discounted, beauty appeared to be one of the only areas Macy\u2019s wasn\u2019t compromising on. The retailer offered no sales on any of its fragrances and also said many cosmetics products were excluded from the closing sale. Macy\u2019s \u201cLast Act\u201d merchandise, which is already discounted,\u00a0was also not on further promotion.<\/p>\n Cara Salpini\/Retail Dive<\/p>\n \u00a0<\/p>\n<\/figcaption><\/figure>\n Other deals at various points included 20% off housewares, 40% off men\u2019s suits and separates and 25% off outerwear, including from brands like Ralph Lauren. Luggage, toys, kids apparel, pillows, linens and small kitchen accessories were also up for grabs at discounted rates.<\/p>\n The Macy\u2019s at Ballston Quarter included a whole floor dedicated to furniture and mattresses, as well as a wide rug selection, all of which were meaningfully discounted during the store closing sale. Sofas, armchairs, mattresses, coffee tables, nightstands and other items all featured steep discounts, sometimes hundreds of dollars off their original price. Sign wielders advertising the closing store early on touted 60% off area rugs, and some mattresses were 30% off.<\/p>\n As the department store required less space, store floors were left empty or stacked with unneeded fixtures like empty shelves, mannequins and tables. Dollies for carting around merchandise were left unmanned. Some merchandise display tables, as well as various pieces of decor, were up for sale or slated to be sent to other Macy\u2019s stores, including a box dedicated to letters for Santa Claus.\u00a0<\/p>\n Cara Salpini\/Retail Dive<\/p>\n \u00a0<\/p>\n<\/figcaption><\/figure>\n In the weeks since Macy\u2019s announced its new slate of closures, analysts have expressed surprise at the magnitude of the pullback, speculated whether the retailer is closing enough stores and taken a look at who could benefit most from the iconic department store\u2019s exit from certain markets. On that last question, off-price is at least part of the answer.<\/p>\n Analysts with Jefferies and Earnest Analytics recently both predicted that off-price retailers, including those run by TJX, would benefit most from the department store\u2019s closures. Jefferies noted \u201csignificant\u201d customer and real estate overlap between Macy\u2019s and TJX, translating to \u201ca few billions of dollars of share gain opportunity\u201d over the next few years. No matter who gains from the closures, one thing is clear to Macy\u2019s: it needs to evolve.<\/p>\n \u201cOf course, we\u2019re very sensitive to the impact a Macy\u2019s closure has on our colleagues, our customers, our vendors and the local community,\u201d Spring said in March. \u201cBut this is a critical step as we move forward. This isn\u2019t about shrinking. It\u2019s about improving historically, to make sure that we\u2019re giving people the opportunity to shop the way they want.\u201d<\/p>\n \u00a0<\/p>\n![\"Shoppers](\"https:\/\/www.retaildive.com\/user_media\/diveimage\/IMG_3069.jpg\"\/)
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