Atlanta, Georgia – Macy’s confirmed the closing of three of its locations in the metro Atlanta area, therefore fundamentally changing its retail strategy. This action fits the company’s comprehensive “Bold New Chapter” program which seeks to improve profitability and simplify operations.
Along with a store in Johns Creek Town Center in Suwanee, the impacted sites comprise two Macy’s stores at Gwinnett Place Mall—one a department store and the other a furniture gallery. Closing these stores fits Macy’s approach to maximize its retail portfolio and concentrate on sites with maximum interaction and profitability.
These closures follow a strategy Macy’s revealed last February whereby it plans to close around 150 underperforming stores over two years. The company’s efforts to adapt to the changing retail landscape have led to targeted closures across the country, with the metro Atlanta stores being part of the 66 outlets announced this week.
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The closing of the Gwinnett Place Mall results from a past transaction when Macy’s sold these buildings to Gwinnett County for more than $16 million. The county then rented the locations back to Macy’s. Officials said, however, that the lease will end early this year, hence these establishments were expected to close.
Although exact closing dates have not been revealed, Macy’s said most of the stores, including those in metro Atlanta, are scheduled to stop operating by the end of March. This chronology highlights the urgency of Macy’s consolidation initiatives in reaction to the changing retail climate.
“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,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc.
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With a total of 22 stores currently in Georgia, Macy’s wants to improve the shopping experience at its forward-looking outlets by concentrating on better products and customer service. The strategic downsizing of the retailer reflects larger trends in the retail sector, in which many conventional brick-and-mortar stores are reevaluating their physical presence in response to the advent of online shopping and changing consumer preferences.
The effects on staff and local businesses will become more evident as Macy’s keeps following its reorganization plan. Although the company usually provides transfer options or severance compensation to impacted employees, it has not made stated arrangements for the staff members at the closing stores.
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The closures reflect a major change in Macy’s operating approach and point to more general difficulties the retail industry faces. The corporation is still dedicated to modifying its business model and guiding sustainable development in the next years even while it deals with these adjustments.
