The Rise And Fall Of Macy's

Macy’s was once the largest department store in the world. But its size is now a burden. It’s closing stores and rethinking its strategy going into its most critical period of the year.

Macy's is testing smaller stores to slash expenses on staffing and inventory. Currently, the department store chain is trying the idea at four locations, including at Stamford Town Center in Connecticut, to cut its real estate by as much as a fifth there and turn those shops into "neighborhood stores." It mimics similar initiatives already taken by rivals Kohl's and Nordstrom. Kohl's is dividing some of its bigger stores to allow room for new tenants like grocer Aldi, while Nordstrom is trying a small-shop concept known as Nordstrom Local in Los Angeles. Even mall operators like Macerich are looking at store space in a new way, rolling out stores that showcase a number of brands for a short period.

"If your store is too big and your dollars per square feet are too low and you can't lease the space to someone else, then you've got to hive off a floor," Macy's CEO Jeff Gennette told the Journal in an interview. "If we were building stores today, we'd build them smaller."

Not needing so many locations — and with some being unprofitable — Macy's in early 2017 shut 100 stores as it's been working to whittle down its real estate. It's also been working with Brookfield Asset Management to allow the real estate firm to redevelop all or part of 50 select properties. Macy's had roughly 690 locations, including those under the Bloomingdale's banner, still open as of the latest quarter.

Macy's "neighborhood stores" will reportedly have more self-service options and an area dedicated to picking up online orders. It's unclear what Macy's will do with the space leftover after the store shrinks in size. A spokeswoman didn't immediately respond to CNBC's request for comment.

Macy's, meanwhile, has set aside about 350 of its more productive stores to get a facelift, including expanded merchandise, remodeled dressing rooms, Starbucks coffee shops, couches for lounging and more, Gennette told the Journal. He said sales at these newly renovated "magnet stores" are surpassing expectations already.

Macy's is set to report fiscal third-quarter earnings before the bell on Wednesday, when it is planning to discuss its real estate strategy in greater detail.

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The Rise And Fall Of Macy's

[HollieForrest]

Anytime I tried to shop at Macy’s I couldn’t find anyone to ring me up, there’s nobody in there to help you.

[SupremeLeaderKimJong-un]

Please do the rise and fall of South Korea

[hassanhabib]

Sounds like Macy’s is turning into a Shopping History Museum

[courtneydurham]

There are so many purchases that I don't make because I can't afford them. Not just luxury items, but necessities. Amazon undercuts brick and mortar stores, sometimes taking a loss just to do this. And since half of all American workers earn $30, 000 a year or less, we shop from Amazon because we need those savings. But the depressed wages in this country are killing big businesses. It's not just because of Amazon. People don't have money to spend. There are so many purchases I would have made at stores in my own town if I only had the money.

[CTOInformation]

rich people don't shop in macys. poor people don't have money to spend. Americans are poor.

[MsBest]

I'm 23 and I still love going to stores to look at items in person.Shopping online is nice...but its just not the same..and it gets me out of the house.

[AsellusPrimus]

The success and failures of department stores give me mixed feelings. On one hand, department stores are giant corporate boxes full of crap no one needs and symbolize everything I despise. On the other hand, department stores can give off a certain warmth and excitement... there's nothing like passing through one in early December, when the decorations are out, the window displays are a show, and each department is organized in perfect displays of the nicest things.

[jessicarose]

Macy’s has lost it’s feeling of magic for me. The stores where I live are always a mess and the racks are filled with cheap-looking clothes at not-so-cheap prices and there’s hardly anyone working the multiple counters... I used to love going to Macy’s over the holidays because of the connection to the parade, but going there makes me depressed now.

[samanthathomas]

I’m a manager at Macy’s. I love working there, but customers can’t comprehend that we are just as, if not more, frustrated by lack of staff than them. I very frequently have to put my jobs and responsibilities on the back burner to help give breaks to my colleagues, cover if they need to leave early, bust lines, whatever is needed. We can’t help that the company thinks cutting staff is the way to save money. Every one in my store is overworked, and under payed. I worked for Bon Ton until it closed its doors, and I love working for Macy’s, but so many people won’t shop with us bc of our lack of staff, something that anyone below a corporate level can’t control. And I can’t even fathom how much we lose in our store, overriding coupons and giving percentages off just to keep customers happy

[archiestanton]

I purchased a few sweaters at Macy's a couple of days ago. The sweaters were put in a small plastic bag no thicker than what you find at the grocery stores, or dollar stores, today. I noticed it immediately. Sure, Macy's saves money using the cheapest bags, available today, but at what cost? It's an image killer. You don't package high-end merchandise in cheap, everyday plastic bags.

[theSelodijehermano]

Maybe if they would sell clothes appropriate for milleanials instead of stuff only my grandpa would wear, maybe we would shop there

[Ankhalimono]

Idk why people are saying is expensive. It not. You find reasonably priced items if you don’t go for name brand. Macy’s own labels are pretty cheap and good quality. And they have tons of markdown items. You just gotta know how to shop ppl.

[pjt]

They forgot to mention federated took Macy's out of bankruptcy. It was a little store in Seattle called the Bon Marche that did that for them. How did they repay those employees? By cutting out commissions and putting us out on the street. Interesting that they now want to try to bring back those special boutiques. You see, your sales staff had a thing called personal trade! They were more valuable than you realized I guess.

[smileandlaughs]

I hope Macy stay in business. They've been a good retailer to the point it almost feel like a family store.

[gs]

Macy's did this to themselves by gobbling up local and regional Dept. Stores and turning them into cookie cutter crap stores. Remember when you could get service at a Dept. store?

[AaronCLB]

I hate how technology is killing stores

[YouSoCute]

l was shopping for an evening gown at Macys, found one for $270. l searched online and found the exact same gown for $143!!!! l asked if they price match and said no. They are out of their mind with those prices!

[adrianvelazquez]

“Without alienating its core customers, Who cares about the stores legacy.”
Yeah I can say the same when back in the early 2000’s Macy’s bought out Marshall Fields from the Chicagoland area. Which was such a premium department store at its time, and was such Chicago landmark especially during Christmas. I can care less if Macy’s closes.

[foreveralone]

Why do people think Amazon is taking over ?!? To be honest I never shop on amazon only if I need something I can’t find ... I love going shopping and spend time with friends at the mall , people just need to get off your phone and live life ! #fuckamazon

[alksjda]

Last time I went to Macy's, the place is totally cluttered with old product and the displays are so old fashioned