Macy’s 2020

Brian Lutz
Veteran Member
Veteran Member
Posts: 767
Joined: March 1st, 2009, 5:51 pm
Location: Lake Stevens WA
Been thanked: 8 times
Contact:
Status: Offline

Re: Macy’s 2020

Post by Brian Lutz »

Macy's just announced that they will be closing 125 stores (including 30 that were already in the process of closing), closing corporate offices in San Francisco, Cincinnati and Lorain Ohio, and laying off 2,000 workers in corporate, and refocusing on smaller stores and off-price stores:

https://www.businessinsider.com/macys-c ... obs-2020-2

SamSpade
Veteran Member
Veteran Member
Posts: 975
Joined: September 13th, 2015, 4:39 pm
Has thanked: 115 times
Been thanked: 3 times
Status: Offline

Re: Macy’s 2020

Post by SamSpade »

Here's the AP writeup as well (I'm not a big "Business Insider" fan myself)
Macy's plans to close 125 stores, 2,000 corporate positions

architect
Veteran Member
Veteran Member
Posts: 790
Joined: December 8th, 2015, 3:41 pm
Been thanked: 1 time
Status: Offline

Re: Macy’s 2020

Post by architect »

As far as some of the Texas stores go, here are my thoughts on which stores will be carried forward/are likely candidates for closure:

DFW
- Northpark Center: Flagship, no questions or risk of closing here
- Galleria Dallas: Store and mall are both at no risk of closing, but are not quite what they once were. To put things into perspective, this was the first Macy’s in Dallas and other anchors at the mall originally included Saks and Marshall Fields (Nordstrom was later added to the mall). Today, the Nordstrom still does good business, but pales in comparison to the Northpark store, while a Belk (opened in the former Saks space in 2014) has drawn consistently low traffic and is actually set to close over the coming weeks. The one positive sign at this mall is that the property was sold over the past couple of years and new management has announced plans to revamp the mall with additional restaurants, a cinema and other entertainment concepts. A residential component is also planned as part of this revamp. Lastly, the opening of a new Apple store here and the simultaneous closures of the Stonebriar and Willow Bend locations to the north has drawn additional traffic to the mall.
- Stonebriar Centre: No questions here, mall is widely successful and the store is well-trafficked. The mall also just underwent a expansion adding a Hyatt Regency and Kidzania, driving even more traffic.
- Shops at Willow Bend: Upscale mall located in a high-income area. However, the mall has struggled with occupancy throughout its history, and competes heavily with Stonebriar just up the road. The big draw to the mall seems to be Neiman Marcus. However, if this Neimans was to close (or potentially relocate to Stonebriar), the only remaining anchors would be Macys and Dillards, both of which also have stores at Stonebriar. I don’t expect this store to close immediately, but barring any more extensive redevelopment plans for the property, I could see this location being eliminated down the road. For reference, this Macy’s recently received a Backstage department, but has received little to no renovation work outside of that since opening as a Foleys in 2001. The mall recently received a lifestyle addition with four restaurants in place of a former Saks anchor, along with a Crayola Experience location, but is otherwise struggling with vacancies.
- Fairview Town Center: This one is a bit questionable. The store is the only location along the 75 corridor north of Dallas, and the surrounding retail area pulls from a wide radius. However, the town center development itself has struggled with low traffic and vacancies since it's opening in the late 2000's. Two other corners of the Stacy/75 intersection are filled with a widely successful outlet mall and a successful big box center, so there is seemingly too much competition for tenants for this area to be successful all around. The Macy’s here seems to be cutting costs quite a bit, including the removal of its Starbucks kiosk. Cleaning and upkeep were also slipping noticeably during my list visit a month or so back, which is concerning for such a new facility.
- Firewheel Town Center: Somewhat of a similar situation to Fairview, albeit with a more successful outdoor mall. The big issue with this store is its location at the back of the development, where it is dwarfed by a Dillards which is prominently visible from the highway and other surrounding roads. This store was relatively new prior to the May acquisition but since has received almost no investment from Macy’s, including no Backstage, lighting upgrades, etc.
- Town East Mall: Aging store, mall and surrounding area, but the mall still pulls steady traffic considering that it is the most accessible mall to points east of Mesquite (Rockwall, Sunnyvale, Forney, Terrell, and points deeper into East Texas). With Macy’s closing their Tyler store in 2016, this is also the closest Macy’s to both the Tyler/Longview and Shreveport areas. The store also received a Backstage renovation a couple of years ago. My guess is that this store is safe for now.
- Music City Mall (formerly Vista Ridge Mall): This store is the poster child for a closure candidate. An aging facility which feels stuck in the 90’s, poor selection, and a declining mall cause this store to actually hurt the Macy’s brand more than anything. If Macy’s was to close this store, most traffic would simply move to other locations such as Stonebriar, which is only about 15 minutes away.
- Golden Triangle Mall: This mall has seemingly been on the brink of death multiple times over the years, only to spring back to life with renovations and new tenants. Surprisingly, the anchor roster is completely filled out aside from a vacant Sears. The Macy’s here seems marginal at best. However, if the Music City store is closed, I could see Macy’s retaining this store over the short term just to provide a reasonably close shopping option for the fast-growing Denton area.
- Irving Mall: Actually, the inspiration for this thread. I was at this store a few weeks ago, and frankly, it should have been closed ten years ago. Maintenance was completely absent, with disgusting floors and water-logged/missing ceiling tiles found throughout the store. The store was also poorly lit. Product was only about halfway stocked, and there were so many empty/minimally stocked shelves that the store appeared to be going out of business. The store is also located at the back side of the mall, with a parking lot riddled with potholes and a generally unsafe feel at night due to inadequate lighting. Irving mall is mostly in decline but has only remained open due to a strong selection of Hispanic-oriented businesses and a successful AMC.
- The Parks in Arlington: The Macy’s here could use some upgrading to bring it out of the 1980’s, but overall, this store still does good business and is attached to a mall which is performing strongly. The store also received a Backstage department a few years back. There is likely no risk of closure here.
- Hulen Mall: This store is somewhat questionable. The mall has been aging and losing tenants for some years now at a slow pace, but still seems to pull decent business. This Macy’s is located in a former Sanger Harris building and is quite large, honestly too large for a department store space today. This location did receive an early Backstage addition, and a large one at that. The big factor working in this store’s favor is the fact that if it were to close, there would be no locations left in Fort Worth proper, and would result in noticeably long drives for residents in the south/west sides of the city and surrounding suburbs. More than anything, I expect that Macy’s might downsize this store to better streamline operations and cut costs.

Houston
- Houston Galleria: Flagship, no questions or risk of closing here
- Memorial City Mall: Upscale mall and store located in a highly-successful area of Houston, absolutely no risk of closing here
- Willowbrook Mall: Both mall and surrounding are are showing their age, with some vacancies present. However, this mall serves a wide trade area, and still pulls in moderate to strong traffic. Interestingly, in the early 2000’s under Foley’s, this store’s operations were split into two locations, with the men’s and home departments moving to a former Montgomery Ward while the women’s selection was retained and expanded in the former Foley’s. I don’t expect this store to close anytime soon, but I could see Macy’s renovating the women’s store and consolidating back into this space (for reference, Macy’s has many other Texas locations which share this design and operate as a single store, so a lack of square footage in the women’s building is not an issue).
- Deerbrook Mall: A similar story to Willowbrook; both the attached mall and surrounding retail area are aging, but are still in healthy shape. This Macy’s was actually completely rebuilt interior-wise in 2009 after Hurricane Ike caused extensive damage to the store due to a roof collapse.
- The Woodlands Mall: This store and surrounding retail area is one of the most successful in the Houston area and shows no signs of slowing down. Absolutely no risk of closure here.
- San Jacinto Mall: This one is an oddity, and I could expect this store to show up on a closure list. Formerly attached to a mall which was treading water for years, this store is located in a portion of the property with poor visibility from surrounding roads and a generally middle-class customer base at best. The store itself has seen essentially no upgrades for years now. However, the rest of the mall is now under active redevelopment for a town center-type development, and supposedly the developer has offered incentives for Macy’s to retain and upgrade their store.
- Almeda Mall: This will also be an interesting location to watch. This store is attached to a late 60’s mall which primarily houses mom and pop stores and pulls from a lower income area. However, the store was heavily damaged during Hurricane Ike in 2008 and was actually subsequently rebuilt on the interior, signifying that the store must have been at least decently profitable at the time. However, considering that Baybrook Mall is located just a few miles to the south in a highly successful trade area, I could see Macy’s choosing to cut this store due to the likelihood of shoppers simply migrating south.
- Baybrook Mall: Successful store and mall and a highly desirable trade area. There is no risk of closure here.
- Pearland Town Center: A store which seems to be healthy, but not quite as popular as nearby locations which are attached to climate controlled malls. This location definitely doesn’t seem to warrant closure, at least not yet.
- First Colony Mall: Another successful store and mall serving a wide trade area. No risk of closure.
- Post Oak Mall (College Station): Not located in Houston metro area, but pulls from some of the same shopper base as some of the Houston-area stores such as the Woodlands and Willowbrook. This store has surprised me in staying open while most other Macy’s stores in small Texas markets have been eliminated over the past few years (Beaumont, Tyler, Temple, etc.). However, this store is located in a fast-growing college town, and the store itself has aged decently well. Recent upgrades include the conversion of some second-floor space into a Backstage department along with new lighting throughout. The jury is out on this one, as it seems to be bucking the trend of Macy’s generally abandoning smaller markets and has received investment by the company. On the flipside, many shoppers in the Bryan-College Station market are accustomed to maing trips to Houston or Austin for better shopping options, making this store a bit redundant.

Austin
- The Domain: Extremely successful mixed-use development which is continuing to grow. It would not make sense for Macy’s to close this store unless if they received a buyout offer for the land which was worth more than what the stores turns in profit.
- Barton Creek Square: A store which is a bit older, but is attached to a successful mall and pulls from the highest-income neighborhoods in the Austin area. Macy’s has continued to invest in store quite extensively, making closure extremely unlikely.
- Lakeline Mall: A 1990’s-built store and associated mall which feels a bit less relevant simply due to being more vanilla than its peers in the Austin-area mall scene. However, this Macy’s has received some upgrades including a Backstage department, and is the primary mall serving fast-growing suburbs to the north such as Cedar Park and Leander. I doubt that this store will be closed soon, but I could see it being eventually replaced by a Market by Macy’s store in the area if the concept proves successful.

storewanderer
Valued Contributor
Valued Contributor
Posts: 6112
Joined: February 23rd, 2009, 3:54 pm
Been thanked: 48 times
Contact:
Status: Online

Re: Macy’s 2020

Post by storewanderer »

Macy's seems to be continuing its path to being a much smaller chain. At this rate Dillard's will be the last department store chain standing in another couple of years.

I am very curious how they seem to have turned on San Francisco. First they closed the Men's Store, then they closed the store in the other mall outside Union Square, now they are closing the tech group there. Historically that city was what anchored their west coast operations, historically their most profitable...

steps
Silver Member
Silver Member
Posts: 106
Joined: February 24th, 2009, 9:05 pm
Has thanked: 1 time
Status: Offline

Re: Macy’s 2020

Post by steps »

storewanderer wrote: February 5th, 2020, 6:44 pm Macy's seems to be continuing its path to being a much smaller chain. At this rate Dillard's will be the last department store chain standing in another couple of years.

I am very curious how they seem to have turned on San Francisco. First they closed the Men's Store, then they closed the store in the other mall outside Union Square, now they are closing the tech group there. Historically that city was what anchored their west coast operations, historically their most profitable...
I haven't been to Macy's in over 10 years now. Last item I bought was store brand Alfani jeans for $60 that ripped the first time I wore them, never been back. They have the worst quality at highest prices. I've bought $20 jeans from Burlington years ago that still last till this day.

pseudo3d
Valued Contributor
Valued Contributor
Posts: 2908
Joined: November 12th, 2015, 7:01 pm
Has thanked: 2 times
Been thanked: 10 times
Status: Offline

Re: Macy’s 2020

Post by pseudo3d »

I'm curious about if Macy's clothes actually look like based on what I saw in the Galleria (Houston) the other day. Fluffy Ralph Polo Lauren jackets with tacky designs at 65% off (now just $300!). Weird overshirt designs that only wouldn't seem out of place at a 1970s disco. Some shirts with some questionable fabric choices (65% polyester, almost like most women's clothing) in the same area. While some shirts had respectable and basic designs, far too many shirts looked like they were designed for going clubbing in.

Maybe those clothes just stood out to me, but it was jarring to see those types of clothes at an A-class department store (which otherwise was in good shape, both in looks and merchandising arrangements).

architect
Veteran Member
Veteran Member
Posts: 790
Joined: December 8th, 2015, 3:41 pm
Been thanked: 1 time
Status: Offline

Re: Macy’s 2020

Post by architect »

An interesting tidbit here: https://www.forbes.com/sites/laurendebt ... b8d0394891

Around 2/3 of the way through this article, it is stated that Dallas will be losing three stores at underperforming malls, while gaining three Backstage outlets and two Market stores, technically resulting in an increase in unit count for the region.

Side note, my guess is that two of the closures are Irving Mall and Music City Mall as previously mentioned, with the third either being Fairview Town Center, Firewheel, Shops at Willow Bend, Golden Triangle, or Hulen Mall.

storewanderer
Valued Contributor
Valued Contributor
Posts: 6112
Joined: February 23rd, 2009, 3:54 pm
Been thanked: 48 times
Contact:
Status: Online

Re: Macy’s 2020

Post by storewanderer »

Macy's products seem a little lost. It seems like even on brand name items they are getting items "specific for Macy's" and these brand name items seem of a lower quality than what I would expect from the brands in question.

I've been in the market for a new coat. I am pretty specific what I want. Macy's selection is really really good and on first glance I get what I want. These are those $250-$395 costs... always 50-70% off. Probably still overpriced even after the discount.

I am noticing Macy's coats even in brand names like CK or DKNY are cheap blends of many materials and are not performing well at all in the cold. Pockets (even in different brands) are interesting as the side-facing pockets on the chest both have no depth and anything you put into them falls right out (what is this? previous coats aren't like this... which were from a variety of sources Sears, Dillards, etc.)... but there is an up facing pocket with a flap you can use...

Needless to say despite having high hopes initially I keep being disappointed with my purchases.

I may just wait for Dillard's next year (they hardly have any coats left) and forget Macy's low quality and high prices.

babs
Gold Member
Gold Member
Posts: 280
Joined: December 20th, 2016, 3:08 pm
Has thanked: 1 time
Been thanked: 10 times
Status: Offline

Re: Macy’s 2020

Post by babs »

storewanderer wrote: February 5th, 2020, 9:49 pm Macy's products seem a little lost. It seems like even on brand name items they are getting items "specific for Macy's" and these brand name items seem of a lower quality than what I would expect from the brands in question.

I've been in the market for a new coat. I am pretty specific what I want. Macy's selection is really really good and on first glance I get what I want. These are those $250-$395 costs... always 50-70% off. Probably still overpriced even after the discount.

I am noticing Macy's coats even in brand names like CK or DKNY are cheap blends of many materials and are not performing well at all in the cold. Pockets (even in different brands) are interesting as the side-facing pockets on the chest both have no depth and anything you put into them falls right out (what is this? previous coats aren't like this... which were from a variety of sources Sears, Dillards, etc.)... but there is an up facing pocket with a flap you can use...

Needless to say despite having high hopes initially I keep being disappointed with my purchases.

I may just wait for Dillard's next year (they hardly have any coats left) and forget Macy's low quality and high prices.
Or go to Costco. During the season they had a ton of different coats, many of which could also be found at Macy's, at prices half or less. For Macy's to survive, they can't sell the same stuff the warehouse clubs stock. There also needs to be some fun put back in the store. I remember as a kid going to Meier and Frank, playing video games, trying samples in the home department. Nordstrom has some good ideas such as having restaurants or bars in their stores. Macy's can survive just by being a boring, over inventoried clothing store.

storewanderer
Valued Contributor
Valued Contributor
Posts: 6112
Joined: February 23rd, 2009, 3:54 pm
Been thanked: 48 times
Contact:
Status: Online

Re: Macy’s 2020

Post by storewanderer »

babs wrote: February 5th, 2020, 10:24 pm
storewanderer wrote: February 5th, 2020, 9:49 pm Macy's products seem a little lost. It seems like even on brand name items they are getting items "specific for Macy's" and these brand name items seem of a lower quality than what I would expect from the brands in question.

I've been in the market for a new coat. I am pretty specific what I want. Macy's selection is really really good and on first glance I get what I want. These are those $250-$395 costs... always 50-70% off. Probably still overpriced even after the discount.

I am noticing Macy's coats even in brand names like CK or DKNY are cheap blends of many materials and are not performing well at all in the cold. Pockets (even in different brands) are interesting as the side-facing pockets on the chest both have no depth and anything you put into them falls right out (what is this? previous coats aren't like this... which were from a variety of sources Sears, Dillards, etc.)... but there is an up facing pocket with a flap you can use...

Needless to say despite having high hopes initially I keep being disappointed with my purchases.

I may just wait for Dillard's next year (they hardly have any coats left) and forget Macy's low quality and high prices.
Or go to Costco. During the season they had a ton of different coats, many of which could also be found at Macy's, at prices half or less. For Macy's to survive, they can't sell the same stuff the warehouse clubs stock. There also needs to be some fun put back in the store. I remember as a kid going to Meier and Frank, playing video games, trying samples in the home department. Nordstrom has some good ideas such as having restaurants or bars in their stores. Macy's can survive just by being a boring, over inventoried clothing store.
Costco in Nevada doesn't seem to get many coats beyond ski type coats. More of that regional merchandising. Or they all sell out at Costco before I get there.

Maybe eventually the mall owners will bail out/buy out Macy's like they just did with Forever 21 (another junk store- but at least it is at a low price point).

The announcement this week shows what bad condition Macy's is in.

Maybe when Macy's finally bites the dust, Dillards can buy off their web operation since Dillards website and online efforts are archaic at best. Macy's online program is very good but if you don't have the right products it doesn't matter how good your website is.

Post Reply