Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

More Macy's Closures

By 
Tali Rozenman
February 6, 2020
More Macy's Closures
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

The store closure storm is brewing, and Macy’s is at the forefront with its recent announcement of 125 store closures in the next three years. But, as we’ve seen in the past, there’s much more than meets the eye when it comes to closures. So, we dove into some of the locations set to close in 2020 to see what’s driving Macy’s strategy. 

Long Island Losses

We started our journey in New York, where two stores are set to close - Macy’s Commack and Hicksville branches. 

When we analyze the Commack location (blue), which is set to close this summer and compare it to two neighbors, Huntington Station (red) and Bay Shore (green) we see an overall upward traffic trend for all three stores from the period of January 2017 to December 2019. However, when we look more closely, we see Commack bringing in the lowest amount of overall store visits, among the three.

The reason for this becomes clear when we look at the True Trade Area and see a significant amount of cannibalization between the three locations. The Huntington store has a clear grasp on a large percentage of Commack’s visitors from the west, and the Bay Shore location cannibalizes Commack’s visits from the south. The cannibalization limits the potential of the Commack branch and indicates that most of the current audience could effectively be served by other locations.

Cannibalization Craze in Hicksville

The Macy’s in Hicksville is already running its final clearance sale, and it is likely due to the same challenge. Its closest neighbors include (once again) the Huntington store (red) and Garden City branch (green). When we analyze these three locations, we see that Hicksvillle and Huntington visits are nearly identical, both dwarfed by Garden City’s traffic volumes. 

Looking at the True Trade Areas for these locations again reveals a glaring cannibalization risk. 

The audience overlap is so significant that almost all of Hicksville’s True Trade Area is shared with both Huntington and Garden City’s Trade Areas. So, closing this location is taking a step in the right direction to optimizing its retail footprint. Essentially, Macy’s doesn’t need as many stores to serve its current audience in this area. Closing these branches is not only cost-effective, but will likely have minimal effects on overall traffic.

Why Keep Huntington?

With Huntington being a common neighbor of both of the closing stores, we compared these three locations against each other. Though there is some overlap with the Huntington location as we previously saw, it’s clear why this location has been spared. The majority of this store’s traffic is its own, and does not spill over to other locations. So, even though store visits may be similar, the overall positioning creates a greater ongoing potential for the Huntington branch than the other Macy’s locations.

Same Story, Different State

If you’re looking to catch another Macy’s clearance sale, look no further than Stow, Ohio, whose Macy’s is set to close in early 2020. When comparing the Stow location (blue) to the nearby Akron Macy’s (red), Stow is leaps below Akron’s. Not only are Akron’s visits consistently higher, but Akron’s peaks are also much more impactful. The week of December 18th was one of the strongest for both stores, but while Stow saw visits rise 168% above baseline, Akron’s visits surged to 649% above baseline.

Akron’s massive True Trade Area completely cannibalizes Stow’s, rendering the Stow location redundant. Removing the Stow store is an obvious strategic move for the retailer.

A Brighter Future for Macy’s?

The narrative that generally surrounds closures is one of doom and gloom and an attempt to focus on “underperforming” stores. Yet, both concepts are too simplistic to shed a great deal of light on the overall health of the brand. When analyzing closure decisions, the prioritization of certain stores can go far beyond recent performance. The ability to better position a fleet of brick and mortar stores can provide an amazing foundation for a retailer to retool and, ultimately, rebound. 

Macy’s realizes that it needs to close stores in order to optimize its retail footprint. And so far, it seems like the chain is identifying the right stores to close. With a tighter portfolio, the brand can focus on maximizing the potential of its existing locations. Will this closure strategy pan out? 

Check back in at the Placer.ai blog to find out. 

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.

Related Topics

Stay Anchored: Subscribe to Insider & Unlock more  Insights
Subscribe
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
The Dining Habits of College Students
Old Navy's Foray Into Occasionwear
JonasCon Brings Even More Experiential to American Dream 
What Happened to Family Dollar? 
The Impending Transformation of Bev-Alc Retail
CVS and Walgreens in 2025
Target’s Bet on Babies 
The Changing Apparel Landscape in 2025
Trader Joe’s and Aldi’s Continued Success
Retailers Betting on High Income Households
Brooks Brothers Rightsizing Success
The Rise of Smaller-Format Home Improvement Retailers: How Ace Hardware and Harbor Freight Are Outpacing Big-Box Chains
Walmart’s Mall Purchase: Towards a More Diversified Portfolio 
Placer.ai Named One of America’s Best Startup Employers 2025 by Forbes
Darden Weathers the Storm
Diving Into Breakfast Chains: What “Eggs”actly is Going On With Eggs Right Now? 
Placer 100 Index, February 2025 Recap 
Why Chipotle’s 2025 Outlook Looks Conservative
Sportswear in the New Year
Placer.ai February 2025 Office Index: Is The Recovery Stalling? 
Discount and Dollar Stores in a Strong Position to Start 2025
Placer.ai Mall Index: February 2025
Allbirds: Flying Towards New Opportunities
Beauty Retail: Changes, and Challenges Ahead
Who Attends the Super Bowl and the Daytona 500?
The $1B Question: Why Dave’s Hot Chicken Is a QSR Powerhouse
Kroger’s Grocery Dominance in 2025
Walmart Goes to the Mall: Insights From the Monroeville Acquisition
Gap Inc. in 2025 – Recapping 2024 and Uncovering Banana Republic’s Athleisure Opportunity 
Department Stores Providing Value in Today’s Retail Landscape
Dine Brands Maintains Their Broad Appeal
Best Buy: Fully Charged for 2025
Shopping Centers Provide Havens for Residents Affected by the LA Fires
National Retail Chains Utilize Stores to Support LA Fire Relief Efforts
Dutch Bros. & Sprouts: Beverage-Led Success
Off-Price Apparel: Off to a Strong Start in 2025
Visitation Trends and Shopping Behaviors at Walmart & Target 
Restaurant Success in 2025: Experience, Convenience, and Familiarity
Home Improvement Segment Shows Stability
Fitness Starts Strong in 2025
The Meat of the Matter: Bloomin’ Brands in 2024
The Beat of the Bowl: Visitation Patterns for CAVA and sweetgreen
Women's Sports on a Roll: Packed Stadiums, The Sports Bra Bar & Restaurant, and Impacting CRE
Year of the Dragon, Luckiest Animal in the Zodiac: Will that Luck Hold for Asian-Themed CRE?
Washington DC: How the Population in Our Nation's Capital has Evolved Following the Pandemic
What First Half 2024 Visit Trends Tell Us About What to Expect in the Second Half
What Does Walmart’s Results Mean for Other Discretionary Retailers?
Warehouse Clubs: Younger Visitors Support Growth
Wayfair: Early Impressions from Wayfair's New Wilmette Store
We're All Mad for March Madness: NCAA Women's Basketball is Breaking All Sorts of Records
Warehouse Clubs: Finding the Perfect Timing
Ulta: A Thing of Beauty
The Sweet Smell of Success: How CPG Brands are Bringing Their Brands to Life with Experiential Stores
Urban Outfitters: High Income, Specialty Fleets Still Thriving
The Silver Lining to Mall Anchor Department Store Closures
Ulta Beauty: Store Visits and Target Partnership Driving Category Market Share
The Secret to Trader Joe's Success in 2023
Tractor Supply: Visitation Share Gains Continue Despite Weather-Related Disruptions
Takeaways from the 2024 Fast Casual Executive Summit
The Lure of Waikiki and Beyond: The Feel of Fifth Avenue on Oahu?
Target: Circle Week Shows Signs of Success
Suiting Up in Boston: Newbury Street Suitsupply Store Showing Signs of Strength
Takeaways from Shoptalk Fall
Stew Leonard’s: Specialty Grocery Still a Shining Example
Small Towns, Deepening Pockets: How Migration is Changing the Face of Boise
Studs: Reinvigorating the Accessories Category
South Asian Influence on Sports, Groceries, and Malls
Starbucks: Silver Linings After a Difficult Quarter
Shopping "High-Low": Escada and Club Monaco share space in Beverly Hills
Round1 Entertainment Expands with Spo-Cha Concept
Self-Storage: More Industry Consolidation Ahead
Self-Storage: Consolidation Driving Year-Over-Year Increases in Visits
Return to Office is Hot in Miami: Placer's New Return to Office Dashboard Launches
Restaurants: Bifurcation Here Too
Self-Storage: More Consolidation as Public Storage Acquires Simply Self Storage
Return to Office Insights: Miami and New York in the Lead
RFDC Takeaways: Lessons from CAVA and Other Restaurant Visit Share Winners
Pop-Ups Drive Excitement and Foretell Brand Demand
Restaurants: Where Do We Stand After Q1 2024
Restaurant Outlook 2024: Year of New Location Expansion Plans?
Reformation: Building an Apparel Destination
Pickleball and Padel: Saviors for Malls, but Threats to Tennis Courts?
Regional Grocery Update: Consumers Seeking Out Lower Prices
QSR Visit Trends: What Gives?
Performing Arts: Takeaways from the California Presenters Conference and Spotlight on Arizona Venues
Public Storage: Self-Storage Demand Resilient
QSR Chicken: Driving the Industry's Growth
Planet Fitness: Signs of a More Resilient Fitness Club Visitor?
Parks, Recreation Centers, and Redeveloped Malls: Community Glue
Outlet Malls: Ontario Mills Leads Black Friday, Arundel Mills Tops November Visitation
Olympics Boost: PR is Priceless
Olympic Inspiration: Is the Fitness Category Bringing Home the Gold?
Outlook for Holiday Thrifting: Inflation, Sustainability, and Gen Z Fuel Growth
Oklahoma, OK!: The Opening of Tulsa Premium Outlets Kickstarts Excitement
"Must-Have" Tenants for 2025: Top Brands to Elevate Your Outdoor Shopping Center
National Restaurant Association Show Takeaways: Who’s Winning the Food Fight?
Non-Traditional Anchors: Cheers or Jeers for Those Replacing Sears?
McDonald's: Where Do Whitespace Opportunities Exist?
Megamalls: All-Day Experiences, Entertainment, and Dining
Mercado Gonzalez: This Mexican Food Hall is a Magnet