Macy’s is Closing
Macy’s has been in business since 1858, and is one of the oldest stores the U.S has to offer. The store’s long run history all began with $11.06 in sales, and led to becoming one of the world’s largest retailers. However, it's all coming to an end. Macy’s has been struggling for a while ever since 2015. Online shopping has dominated the retail market, pushing brick-and-mortar businesses out of it’s way. Since then they have closed more than 100 stores across the nation resulting in over 5,000 jobs loss. 11 of those are expected to close this year in 2018. That is 15% of all their stores.
Amazon surpassed Macy’s stock in 2015, and stayed on top The internet age has left American’s without a need to go to stores anymore. Everything they need can be sent by drones to their doorsteps. Look at these graphs. Macy’s is nowhere close to amazon's profits. Amazon has managed to surpass Macy’s stock in 2015, and ever since has been on top. This shows how the online era is making brick-and-mortar businesses worry. Through the century, businesses showed their growth as a company by building more stores. Now, that is meaningless when a entire store can be compacted into a website. Lately many large retailers have been closing their stores due to the rise of the internet age.
Macy’s is not done for however. The retailer is worth $6.4 billion, but owns more than $16 billion in real estate. They have been slowly selling off parts of their estate ever since 2015. Even though it may seem terrible for the company to e selling off parts of their business, they are saving over $300 million in annual expensive. By shutting down stores early, Macy’s saves money and it helps them transition more quickly to becoming a online market.
Bowman, Jeremy. “Why Macy's Is Closing Even Profitable Stores.” The Motley Fool, The Motley Fool, 21 Jan. 2017
Thomas, Lauren. “Here Are the Stores Macy's Is Closing Next.” CNBC, CNBC, 4 Jan. 2018