Kohl’s announced plans to close 27 underperforming stores by the end of April, while Macy’s revealed it will shut down 66 locations during the first quarter as part of a strategy to focus on high-performing stores and online sales. Macy’s aims to reduce its footprint by 150 stores by 2026, leaving 350 nationwide.

Macy’s CEO Tony Spring stated the closures would allow the company to prioritize resources in stores where customers are responding positively. The retailer also plans to generate $275 million in revenue from real estate sales in 2024, up from a previous projection of $150 million.

Kohl’s closures will primarily affect California, including its San Bernardino fulfillment center. Macy’s is closing more than a third of its NYC stores, including locations in Queens, the Bronx, and Brooklyn. The company will retain nine NYC stores, including its flagship Manhattan location.

Macy’s sold its Brooklyn Fulton Street store for $23 million, well below market value. Both companies have faced struggles with declining sales and pressure from activist investors.

Source:  Bisnow