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Welcome to The Backroom, a window into what goes on behind the scenes as the Retail Dive team covers the stories and trends reshaping retail. You can check out all our podcast episodes (past and present) here and listen on Apple Podcasts, iHeartRadio and Spotify.
A few decades ago, as Macy’s took over and subsequently erased local and regional department stores across America, it arguably came to define the century-plus old retail model. But, amid challenged sales, it has spent the better part of the 21st century so far drastically shrinking its footprint and experimenting with a smaller format away from malls. As 2023 dawned, then-CEO Jeff Gennette declared that the company was “in the final stretch” of closing stores.
But in recent weeks, Macy’s new chief executive officer, former Bloomingdale’s CEO Tony Spring, announced that yet another 150 Macy’s stores would close, declaring that the chain was running “too many locations that were built for a different era.” Whether a store shuts down will depend on how its real estate value compares to its retail-based performance — and even profitable stores may shutter. Perhaps that’s because the company is under pressure from real estate-minded investors that have gathered up $6.6 billion in a bid to take the company over, threatened a proxy fight and fomented a board shakeup.
The latest closures have already begun, and it’s no small thing to wind down a sprawling retailer like a department store, as Retail Dive Senior Editor Cara Salpini documented for her look inside a closing Macy’s store, a longtime anchor of the Ballston Quarter mall in Arlington, Virginia. The team talks about their coverage of Macy’s over the years, what is happening there now and what the future may hold.
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Editor’s note: This episode was produced and edited by Caroline Jansen.
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Retail Dive Staff, Khareem Sudlow
