Macy’s was once the largest department store in the world. But its size is now a burden. It’s closing stores and rethinking its strategy going into its most critical period of the year.
Macy's is testing smaller stores to slash expenses on staffing and inventory. Currently, the department store chain is trying the idea at four locations, including at Stamford Town Center in Connecticut, to cut its real estate by as much as a fifth there and turn those shops into "neighborhood stores." It mimics similar initiatives already taken by rivals Kohl's and Nordstrom. Kohl's is dividing some of its bigger stores to allow room for new tenants like grocer Aldi, while Nordstrom is trying a small-shop concept known as Nordstrom Local in Los Angeles. Even mall operators like Macerich are looking at store space in a new way, rolling out stores that showcase a number of brands for a short period.
"If your store is too big and your dollars per square feet are too low and you can't lease the space to someone else, then you've got to hive off a floor," Macy's CEO Jeff Gennette told the Journal in an interview. "If we were building stores today, we'd build them smaller."
Not needing so many locations — and with some being unprofitable — Macy's in early 2017 shut 100 stores as it's been working to whittle down its real estate. It's also been working with Brookfield Asset Management to allow the real estate firm to redevelop all or part of 50 select properties. Macy's had roughly 690 locations, including those under the Bloomingdale's banner, still open as of the latest quarter.
Macy's "neighborhood stores" will reportedly have more self-service options and an area dedicated to picking up online orders. It's unclear what Macy's will do with the space leftover after the store shrinks in size. A spokeswoman didn't immediately respond to CNBC's request for comment.
Macy's, meanwhile, has set aside about 350 of its more productive stores to get a facelift, including expanded merchandise, remodeled dressing rooms, Starbucks coffee shops, couches for lounging and more, Gennette told the Journal. He said sales at these newly renovated "magnet stores" are surpassing expectations already.
Macy's is set to report fiscal third-quarter earnings before the bell on Wednesday, when it is planning to discuss its real estate strategy in greater detail.
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The Rise And Fall Of Macy's
Sears was largest department store not macy but macy at holiday season have magical fields.
Armando Dy (10 days ago)
Macy's should sell toys. And price match with Wal-Mart. And revamp the website to compete with Amazon and Walmart dot comm.👍🤠
Victoria Poloo (11 days ago)
COME ON ALL OF MY CHILDHOOD FAVORITE COMPANIES ARE DIEING AND IT HURTS!!! although Macy’s isn’t completely dead yet so I suppose that’s ok
De Cnijf Kris (12 days ago)
Richard Hernandez (19 days ago)
I looove Macy's 😢 specially on holidays it's beautiful
Jerry Wormer (23 days ago)
1. Cut too much staff.
2. Didn't reinvest in stores.
3. Clothes are ugly.
4. Won't compete in electronics.
5. Too many stores.
Cherry Drawer (25 days ago)
We dont even have a Macy's near me
Kazuto Lu (27 days ago)
Macy should sell clothes that are trending Now instead of old clothes
KO Investing (29 days ago)
Macy is retail trash
bumperxx1 (1 month ago)
All fun and games until you don't have a brick and mortar store to walk into its smell that perfume or new Cologne. Dam my favorite Cologne isn't sold in stores or online anymore I guess I have to get a new one let me check Amazon 05 star rating on this new Cologne let me buy that. 2 days later because we know you're a prime customer you get the Cologne And it smells like old man dam I never thought I would see the day where I actually should probably go into a store and get something I like by actually physically being there. Like I said in the beginning all Fun and games until you have to return merchandise because it's just not what It's cracked up To be.
henry rivera (1 month ago)
I like how Macy’s smells.
Dirty Dan (1 month ago)
I'm actually banned from Macy's 😂
Jamie Mirabella (1 month ago)
drag queen story hour is the final nail on the coffin
symbians60user (1 month ago)
Boring video. You can do better.
Maxine Waters (1 month ago)
everything at macys is overpriced you can get much cheaper on Amazon
Jill Wilkerson (1 month ago)
Every business is effected by trends. The trend used to be big elegant stores and malls. Now those are the things of the past. Not what people want anymore. Big elegant stores and malls are closing as a result. No more business. Survivors are the companies that change with the times and trends. Amazon is huge now because it is leading the trend of shopping online. Also good prices, extensive choices and outstanding customer service. If Macys wants to survive and thrive it must make radical changes and follow the Amazon example. If it doesn’t, it will continue to decline because it isn’t giving customers what they want these days. Walmart is a good example of a retailer who is changing to keep up with current trends. Walmart offers more and more online services...at good prices with lots of choices and good customer service. As an online shopper I have started sending more and more business to Walmart online because of the changes they’ve made. The trends say that I am not alone in doing this. Macys— are you watching?
Darrid Morris (1 month ago)
Few of their innovations were actually theirs. All copied from other retailers.
Sublime Music Channel (1 month ago)
Lord, but the narrator is dull to listen to. Either a sleep aid or an inducement to suicide.
Brian Odom (1 month ago)
I’ve never spent one cent in Macy’s. The merger with Federated and May killed their business with the rebranding efforts. Gone were all the regional brands and they forced the name Macy’s down everyone’s throat. LS Ayers = Macy’s. Strawbridge’s = Macy’s. Marshall Fields = Macy’s.
They blew their chance to regionalize itself by dumping all the regional history and names. I have no need to go inside one of their stores. I may have walked into one once or twice.
Also, Amazon isn’t to blame; it’s the entire mall model and lack of adaptation.
381MEDALLION (1 month ago)
That's not true, I'm poor and I shop there. Love the sales people there
Robocop (2 months ago)
Now its overpopulated with Mexicans
Michael Lindsay (2 months ago)
Macy's is way to high in there price of clothes
Adam Baum (2 months ago)
Macy's is not middle class but upper class.
The Random Videos Channel (2 months ago)
maria anna indita hernawati (2 months ago)
lalu bagaimana dengan industri fashion di batam jika macy tutup?
mungkin pemangku kebijakan di batam bisa mengambil keputusan untuk membuat batam lbh baik
industri memang bagus, tapi ketika trend berganti dengan cepat yg ada hanya ketidakpastian bagi pekerja
Dillon Michaels (2 months ago)
I think their main issue is that their clothing is way out of date. I don’t know anyone who goes there for regular, every day clothes. Everyone seems to go there for professional or special occasion clothing. If you go to the juniors section you will hardly ever see junior buying their jeans and tops, most go there for their homecoming or prom dresses or men for suits. Even for household appliances and stuff most people can go to stores like target, bed bath and beyond, and even Walmart for they kind of stuff for lower prices. Their target consumers are aging quickly and some are even becoming to hip to dress like that so they need to revamp their look immediately if they want to be open for longer than the next 1-2 decades
Happy Cat (2 months ago)
Amazon will soon beat out every single store is my theory
Frankie Roberts (2 months ago)
One word .japan and America's helping Walmarts junk
Ana Banana (2 months ago)
I love Macy's. best department store.
Alex Arias (3 months ago)
@0:45 is that in West Palm Beach?
annette d. (3 months ago)
I noticed it happened about the time as those pos chip cards came out which I refuse to get.and people started buying online instead of going into stores
Yeah! Screw that! If I can't pay cash for something then I guess I don't need it then do I ?!
the rfid chip is the mark of the beast.it's blasphemy against the holy ghost it's unforgivable only Jesus saves no other name! Those that go to hell will suffer worse than what Jesus suffered when he died on the cross and it's forever!
Prue Winnefred (3 months ago)
Not to mention Macy's makes its employees take their customers credit card information without their consent and store it on their system. Not like anyones ever been hacked before 🙃.
Lauren Nicole (3 months ago)
Sorry I ain't spending 80$ on a outdated grandma shirt
A V (3 months ago)
Good video. Bad narration...sounded very scripted/robotic.
jak p (3 months ago)
Main problem with Macy’s is product. Why would I go to Macy’s to buy Levi’s when I can go to anywhere including target to buy Levi’s for less. Lately, Macy’s is just a expensive kohl’s with most of the same products.
Cousin Drew (3 months ago)
Rise and fall of Reebok?
Diego Fianza (3 months ago)
Ca Mcaethy (3 months ago)
Can't wait until they close all of them
Ca Mcaethy (3 months ago)
I hope Macy's go out of business. They are nesity trashy racist criminals.
Cammy Mc (3 months ago)
I see there was no mention of Macy's history of racial profiling.
Danica Mihajlovic (3 months ago)
They are only paying 9$ for hour as a seller it’s not fair to people that work there considering how hard they require them to work and how busy it is
malcorub (3 months ago)
The common theme to all these "Rise and Fall" videos...Amazon or online shopping.
SaltyPineapple (3 months ago)
That mic is picking up all your slup and lip smacking, maybe try a bit to make the audio sound nice yeah?
SaltyPineapple (3 months ago)
2:21 Who pronounces this like this? I don't wanna be mean, I probably couldn't do the job either but man its weird announciation
David May (3 months ago)
How about making their Chicago stores local again and bring back Marshall Fields?
Tsetsi (3 months ago)
I pretty much hated Macy’s when i lived in the states
maria belen coronel (3 months ago)
I honestly dont shop at macys, my parents shop there but please dont compare macys to amazon because many brands that are at macys stores like lacoste, polo ralph lauren and michael kors are high quality brands that are kind of expensive and cannot be compared to other brands that online stores like amazon sell
Ms. Smith (4 months ago)
This is a lie and old news. Macy's is doing decent as of today (3/22/19). We get bonuses every quarter because we meet or exceed our sales goals ✌
Shawn Futch (4 months ago)
Macy's sold my shopholic mother 100s of 1000s of dollars in clothing that she never even wanted , sales lady pressured her , they were sending mail to her and calling her is there an lawyer in the thread???
Resplendence (4 months ago)
Whatt I love Macy's and I hate shopping for clothes online because the sizes are so different
Mike the Mechanic LLC (4 months ago)
Once you got rid of Lacoste I left....
Ethan Jae (4 months ago)
We all know that Macy’s and Dillard’s are the stores you have to get through to reach the rest of the mall.
Chris K (4 months ago)
What's the target demographic the choice of narrator is aiming to reach?
One of our family traditions has been to drive from Milwaukee Wi to Michigan Ave in downtown Chicago to really get into the Christmas spirit on the day after Thanksgiving. It's so beautifully decorated, happy shoppers, live sidewalk musicians, elegant stores, restaurants. It's a perfect relaxed holiday stroll. Love it!
dude handsome (4 months ago)
Commentator has a rather unique accent
RyokoAsakuraLastFan (4 months ago)
Besides being high price they are carrying brands that aren't popular
SweetGinRickey (4 months ago)
No surprise here. Macy's sucks ass. Their underwhelming merch is consistently overpriced. Macy's is literally the very last store that I would go to for something that I needed to buy.
Dacy (4 months ago)
Damn it seems like all the stores are falling 😂 .. first K-mart , then Toys R Us , Sears , JcPenny , CHARLOTTE RUSSE, and NOW MACYS .. what next 😳
Fallon M (4 months ago)
Macy’s is too damn expensive with wash cloth material clothing!
Beauty Wigs (4 months ago)
Just like jc penny's they have a sephora why dosen't macys just make a deal with ulta beauty that would bring in more sales and traffic
Jessica Blasingame (4 months ago)
This is a great store and job! 😀😀😀
George Deal (4 months ago)
The title is wrong. There was no Fall.
Denice G. (4 months ago)
Keep the one in 34th street NY.
Michael Brent (4 months ago)
The problem is you are fake news. Granted, you stated facts. However, what are the current stats and projections for 2019? You show pictures of Sears, which has not been able to sustain Kmart, and is going under. Macy’s is growing. It is smart to close stores in areas that do not make sense. It’s basic business.
molly (4 months ago)
Once a guy farted at macys
Samantha Thomas (4 months ago)
I’m a manager at Macy’s. I love working there, but customers can’t comprehend that we are just as, if not more, frustrated by lack of staff than them. I very frequently have to put my jobs and responsibilities on the back burner to help give breaks to my colleagues, cover if they need to leave early, bust lines, whatever is needed. We can’t help that the company thinks cutting staff is the way to save money. Every one in my store is overworked, and under payed. I worked for Bon Ton until it closed its doors, and I love working for Macy’s, but so many people won’t shop with us bc of our lack of staff, something that anyone below a corporate level can’t control. And I can’t even fathom how much we lose in our store, overriding coupons and giving percentages off just to keep customers happy
Sandra Melo (4 months ago)
How about focusing on providing better customer service as well.
Gianmarco Perez (4 months ago)
Macy’s employees are rude in Puerto Rico.
Bruce Schweyer (4 months ago)
Macy's markets high-priced junk
Gabi Fuller (4 months ago)
The only purpose for me to go to Macy’s is looking for a nice dress. Otherwise, they are way too expensive.
Jeff Long (4 months ago)
You said they had 600+ stores, but you did not they closed any. So how is that "the fall.."
Hell Rell (4 months ago)
macy’s will fall
RAFFA _NICE (4 months ago)
The rise of the soviet and the -fall- return of the soviet
Michael Herder (4 months ago)
i like macy's. I hope they figure it out.
Guyana Online Shopping (4 months ago)
2025 macys will be extinct
Carlos Reghis (4 months ago)
Last Christmas I spend my money with old Navy.
Chiquita Valdez (4 months ago)
For all you millennials who think you're getting a deal from Amazon and online stores. I have a shocker for you. The makeup that you're buying has fecal matter in it. There was a test done buy a scientist that showed that's not real makeup. Millennials are buying makeup from Amazon and online. You don't know who this makeup is from. When the makeup was tested it had fecal matter in it. Some of the name brand makeup what's not real. I'm not promoting Macy's I'm not promoting name brand stores. My point is get off your Hines and start going to the stores and buying your stuff stop being so lazy. You don't know what people are sending you in a box. You don't know what you're putting on your face. Because it's sure not what you think. You might as well go to the Walgreens right up the street it does the same thing.
Donalisa Santos (4 months ago)
Sounds like a negative black narrator who doesn’t know what she’s talking about. That proves my point cause she black!! And keeps putting Macy’s down.
Pastor Patrick Winfrey (4 months ago)
I guess the liberal CNBC forgot that there is a boycott against Macy's over their PC attack against the POTUS.....that is at least 10% of their downward turn since 2015.....
mk toohtwo (4 months ago)
Pastor Patrick Winfrey Trump used to do commercials for Macy’s not too long ago- lol.
Elisa Han (4 months ago)
I don’t mind shopping at Macy’s, but there was this one time where ALL the fitting rooms were closed. I was running all around the floor trying to find a room, and i finally did find one that wasn’t closed, but they only had one room (the other was for handicapped people only and was locked with no one inside). No employee was around either, and if you wanted to pay for your items you had to go on the other side of the store or go up one more floor....never going back to shop there again 🙁
Jagroop Dhillon (4 months ago)
The stock is dirt cheap. Not for the actual business but because of the real estate they own. Amazon should buy them for warehouse depth and help in logistics of urban areas especially New York.
Boon Doggle (4 months ago)
Macy’s is the only place I can get decent work clothes for a decent price, but it’s probably true that fewer and fewer people are buying men’s shirts and ties and sport jackets these days, which is bad for me because I need them for work.
Ken Spencer (4 months ago)
They say they are loosing sales and they don't want to sell Jamaican on line
Patty Robin (4 months ago)
All communist institutions fall. Macy's no different. Serves them right.
Bxby Bre (4 months ago)
Leave my Macy’s alone...
D. King (4 months ago)
Macy's NEEDS TO GO THE WAY OF SEARS.
They treat customers AND employees like second-class compared to the top executives / shareholders... And that would be fine...If their hiring practices weren't borderline illegal / totally illegal.
Boycott this trash company. Horrible practices. Overrated products. Horrible experiences above all.. I think Macy's Backstage is the ONLY logical choice to shop at and even then it's third-world GARBAGE marked up 1.5x
Aruka Kirigiri (5 months ago)
Toys R Us, Sears, Barnes & Nobles, and Macy’s. Amazon has killed so many business like a parasite.
What’s next, Kohl’s?
Brian Heinis (5 months ago)
Is that really the best voice for narrating you could find????
Diosdado Santiago (5 months ago)
As long as there's Macy's Thanksgiving Day Parade, know that Macy's doing just fine.
neena tima (5 months ago)
I’m surprised this video didn’t mention that more and more consumers are heading to stores like TJ Maxx, Marshall’s, etc where you can usually find the same items but at much lower prices.
ll c (5 months ago)
Whatever macy's sells, i can find for a lot less elsewhere. Nothing unique at macy's
yoo seo jin wife (5 months ago)
I hope I can purchase online from aboard like nordstrom
Bobert Aboo (5 months ago)
please do a rise and fall of NBC...
that's why they came to youtube!
Christopher Pett (5 months ago)
Macy's will fall into Oblivion, they are cursed.
TU nguyen (5 months ago)
Hope macy no closing love this store
Kota Kusanagi (5 months ago)
No theres no way they will go out of buiness cause its a big company. I work for a warehouse where they do logistics, its easy but then theres a big slow down. During holidays they usually get to picking up though
Glenn Moonpatrol (5 months ago)
Nothing can save them. The model is totally wrong. When e-commerce is not priority over clothes racks on a marble floor, you go bankrupt.
Vivian Dennis (5 months ago)
Macy’s is one of my favorite places to shop,honestly it’s not that expensive they’re always having sales.
Chris Kalogeropouls (5 months ago)
They put your merchandise in a cheap plastic bag just like Walmart.
Bino Dino maxilimilanMus royal guar (6 months ago)
Never even heard of this ‘macy’
*_•reshirm•_* (6 months ago)
3:46 serramonte... i live a mile away from this mall lol. miss how it used to be.
Gina R (6 months ago)
Macys should sell fashion brands that millenials want for example fashion nova, supreme, at least a small collection of each..