WPBN: To begin the year, two large retailers announced closing their stores. News releases from both Macy’s and Kohl’s announced Thursday that their stores around the country will shortly be closing.
Here’s what you should know.
More than 60 Macy’s locations are closing.
As part of its “Bold New Chapter” strategy, Macy’s, located in New York City, plans to close 66 stores in around two dozen states. The company refers to these soon-to-be-closed locations as “non-go-forward.”
The goal of the new approach, which was first revealed in February 2024, is to get the business back to steady, profitable sales growth. Macy’s announced in a news release on Thursday that it intends to eliminate roughly 150 underperforming stores over the course of three years.
“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive Macy’s stores to allow us to focus our resources and prioritize investments in our go–forward stores, where customers are already responding positively to better product offerings and elevated service,” Tony Spring, chairman and chief executive officer of Macy’s, Inc. stated.
Although it is included on the list of upcoming closures, Macy’s states that the Hillsdale Furniture site in California closed in 2024 and that the furniture business moved to a full-line location in the vicinity of the Hillsdale Furniture location.
There were also shops in Mission Valley, California, Fort Lauderdale, Pembroke Pines, and South Dade, Florida, that were just selling furniture, and they relocated to nearby Macy’s stores that sold apparel as well. sites that concentrated on furniture were shut down in 2024.
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These sites were located in Boca Raton, Florida, and the Streets at Southglenn in Colorado. The latter also moved to a new town.
In the beginning of 2025, it is anticipated that the majority of the stores listed above would be shut down. However, the stores located in the Essex Green Shopping Center in New Jersey and Queens Place in New York are scheduled to close in the middle of the year.
Before the month of April, Kohl’s will close roughly 30 stores.
Kohl’s has declared that it will be making “real estate changes” for the year 2025. These changes include the closing of its E-commerce Fulfillment Center in San Bernardino, California, in May, as well as the closure of 27 shops that are not functioning well by April 2025.
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“We always take these decisions very seriously,” Tom Kingsbury, Kohl’s chief executive officer, in a press release stated. “As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams.”
There will be store closures in 15 states, with California seeing the most closures.
A severance payout or the opportunity to apply for another open position within the company were offered to affected employees, according to Kohl’s.
These closures follow a turbulent year for numerous fast-food restaurants and large retailers. JOANN Inc. and Advance Auto Parts, along with Big Lots and Red Lobster, which were rocked by bankruptcy, were among the companies who closed their locations in 2024. Some of the affected brands anticipate closing their stores in 2025.
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