Giant retail chain announces major closure

It's hard out here for a retailer.

Those might not be the original song lyrics, but they ring true in 2025.

Unless you're a massive big box retailer with a large footprint, an indomitable online presence, robust delivery capabilities and unbeatable prices, it's probably been a difficult past several years for you.

So if you're not Walmart WMT or Amazon AMZN, buckle up because things will get rocky.

While 2024 didn't set any records for businesses going under, we still saw plenty of bankruptcies. The total number of bankruptcies was up 14% compared to the year prior, at just around half a million companies filing for assistance.

More Retail:

Joann Fabrics, a brick-and-mortar craft store that has been in operation for over 80 years, filed for Chapter 11 bankruptcy in January for the second time in one year. Other 2024 bankruptcies included other household names, like Red Lobster, Party City, Body Shop and Bowflex.

The Macy's store in downtown Brooklyn is one of the iconic department store locations that closed earlier this month.
Spencer Platt/Getty Images

Retailers continue to struggle

The interesting part about companies going under nowadays is that there isn't one reason for the struggle.

Changes in consumer behavior during and after COVID-19 certainly contributed to many retailers' downfall. An uptick in inventory shrink — the industry term for a loss of goods due to theft and other issues — increased as costs skyrocketed and some folks became more desperate. Attrition in retail also contributed since there were fewer employees to enforce store policies.

The dwindling popularity of shopping malls also played a large part. Legacy mall stores, like Express and The Body Shop, had less foot traffic as malls saw dwindling interest. And it's difficult to set up a robust online presence as sales fall.

Others, however, were due to simple mismanagement, as is the case with Red Lobster.

Macy's is a unique retail scenario

However, one mall retailer that's in a category of its own seems to be M.

Like some of its peers, the iconic mall flagship store has struggled for years thanks to decreasing foot traffic and a lack of customer interest in paying full price. Sure, it's nice to go to a department store to check out handbags, fragrances, and furniture but you can also browse online, and usually for a fraction of the price.

So Macy's has found it nearly untenable to continue to pay outsized rent to maintain its position in malls. That's no longer a prestigious prospect, and it had to start culling locations. It announced in 2024 that it would shutter 150 stores over the next three years in an effort to turn business around.

It calls this strategy its "Bold New Chapter," and it includes quite a few cost-saving measures, plus the reintroduction of legacy brands from its mall heydays.

It most recently announced that it would permanently close a key fulfillment center in Sacramento, Calif., in an effort to further reduce overhead. It will affect approximately 79 jobs and is anticipated to shutter in September 2025.

“The decision to close this location is part of Macy’s Bold New Chapter strategy to simplify and modernize our operations,” a Macy's spokesperson said.

So far in 2025, Macy's has also shuttered 66 stores and claims its finances will begin to look up. In 2024 it claimed it would save $100 million as it continues to focus on supply chain and efficiency.

Read news from 100’s of titles, curated specifically for you.

Already a member? Sign in here