American Retail Giant Announces Over 100 Store Closures
We are currently witnessing the intended effects of Bidenomics.
American department store giant Macy’s has announced the closure of over 100 physical stores amid a turbulent retail environment and crimes like shoplifting.
Macy’s says it will shift its core focus to its luxury brands Bloomingdale’s, and Bluemercury—a classic sign of failure in the mass consumer market.
The idea behind focusing on luxury typically revolves around the belief that the upper classes are more insulated from typical economic downturns.
Selling on volume is an excellent strategy for any business, but not if the costs of doing business far outweigh the revenues.
Macy’s, physical department stores, and big-box retailers spend boatloads of money just to keep their doors open for a shrinking pool of customers.
Online shopping and small, independent, boutique retailers with much less overhead have taken over. Brick-and-mortar retail has an uphill challenge in even the best of economic environments.
This is made even worse in an economy beset by record inflation and the looming threat of a currency collapse via de-dollarization. Here’s the latest on Macy’s and the broader retail collapse:
Macys is closing over 150 stores.
H&M has filed for Chapter 11 bankruptcy.
Outback Steakhouse is closing 41
Restaurants.Rite Aid is done.
Sidewalk retail is dying.
— Faye Bishop (@MsFayeBishop) February 27, 2024
16% of product was stolen from Macy’s Union Square in 2023, the highest “shrinkage” level of any Macy’s in the US, according to an insider source. (acceptable shrinkage is >1%) so f your head is spinning with all the spin, you’re not alone. pic.twitter.com/L5UOHr8Z1p
— Erica Sandberg 舊金山的神奇女俠 (@EricaJSandberg) February 28, 2024
NBC News reached out to Macy’s corporate spokespeople for comment:
In an email, a Macy’s spokesperson declined to comment about which specific stores are closing.
In a statement obtained by NBC News on Tuesday, San Francisco Mayor London Breed said she had learned that Macy’s 400,000 square-foot flagship location in the city’s Union Square will eventually be part of the closures, though not in the initial round of 50.
Congressman Kevin Kiley remarked: “The collapse of San Francisco continues. Macy’s is closing its flagship location in one of the biggest retail closures ever. This is the “model” that SF politicians Gavin Newsom and Kamala Harris want for the whole country.”
The collapse of San Francisco continues. Macy’s is closing its flagship location in one of the biggest retail closures ever.
This is the “model” that SF politicians Gavin Newsom and Kamala Harris want for the whole country.
— Kevin Kiley (@KevinKileyCA) February 27, 2024
BIDENOMICS: Macy’s closing 150 stores, H&M filed for bankruptcy, Outback Steakhouse closing 41 locations, and Rite Aid is closing 200 pharmacies. Everything is fine. pic.twitter.com/OFIl5Cgmdh
— @amuse (@amuse) February 28, 2024
CBS News added:
The announcement of the store closures comes after Macy’s last month rejected a $5.8 billion takeover offer from investing firm Arkhouse Management and its partner Brigade Capital Management.
Financial firms have eyed Macy’s partly for its multibillion-dollar real estate portfolio, which some say is undervalued in the stock market.
