MACY’S is considering closing a store in a major downtown area as part of a mass closure.
The company plans to close around 150 stores, and a store in California may be at risk of closure.
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According to a local Fox affiliate, the store in downtown Sacramento, the capital of the Golden State, could close.
But there is still hope for the location.
Officials told local news that no final decision has been made. It is unclear what led to this particular location being closed, according to local reports.
Make a decision
“Our new strategy aims to create a more modern Macy’s,” a spokesperson told Fox 40.
“A final decision on specific locations is still pending,” it said.
The Sacramento location is part of Downtown Commons, a complex that includes the Sacramento Kings basketball stadium.
While this means that people would continue to be drawn to the mall (also known as DOCO), the mall would likely struggle without the two-story Macy’s.
Should the location close, there will be other branches of the department store in the area that will fill the gap.
There is another store on the outskirts of town in the Arden Fair shopping centre.
There are also several locations serving the suburbs.
It is currently unclear when a decision will be made on the DOCO location, but the company has announced that the 150 stores will be closed within three years.
The US Sun contacted Macy’s for clarification.
MACY’S NEWS
Department stores have struggled to make ends meet in recent years as the boom in online shopping kept customers away from malls.
Poorly performing sites are expected to be closed in the coming years.
To contain the problem, Macy’s is pursuing a new strategy: smaller stores.
It is planned to open 30 locations in a “small format”.
Officials said the locations would offer a more select range of goods.
According to the company, there were already a total of eight mini-stores last year.
Sears, once a fixture in American shopping malls, has closed one of its last remaining stores.
Why are JCPenney stores closing?
JCPenney made headlines after announcing that the chain will close several stores in the coming months.
The once thriving department store chain is facing declining sales and is struggling to attract new customers.
The rise of online shopping has also reached brick-and-mortar stores and shopping malls.
When the Covid-19 pandemic hit, retailers, including JCPenney, suffered another blow that proved fatal for many.
The retailer’s financial difficulties peaked in May 2020, when it filed for bankruptcy protection with debts of around $4 million.
The subsequent restructuring saw a number of store closures as the retailer pursued a new strategy for sustainable growth.
Between 2020 and 2021, 175 stores were closed nationwide.
But even after the takeover, the company continues to struggle with sales problems, particularly as consumers tighten their belts due to high living costs and inflation.
JCPenney’s net sales fell to $2.3 billion in the fourth quarter, down 5.9 percent from a year earlier, while net income fell 8.9 percent to $41 million.
