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
 on 
February 6, 2020
More Macy's Closures

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. 

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
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.
Crocs’ Footwear Fairytale
Who Attends NCAA Final Four Events?
Eclipse Fever: How Did the (Retail and Hospitality) Stars Align?
Exploring Albertsons Companies’ Grocery Growth
Placer.ai Mall Index: March 2024 Recap – Malls Rise Again
Placer.ai Office Index: March 2024 Recap
Florida Spring Break Break-Up? Travelers Still Love Florida!
Provo-Orem and Ogden-Clearfield Emerging As Utah Hotspots 
Three Formulas for Experiential Retail in 2024
Aldi & Lidl Making The Cut
Texas Suburbs on the Rise
Exploring Luxury Hotel Brands’ Guest Segmentation
The St. Patrick’s Day Effect
How Can JOANN Make a Comeback?
Panera Bread Well Positioned for Possible IPO
Who Will Benefit From Family Dollar’s Downsizing?
Dave & Buster’s and Main Event Entertainment: Food and Fun for Everyone
Darden Brands: Location Analytics and Consumer Behavior
Nike and lululemon: a Strong 2023, Sprinting into 2024
Where Is Retail and Dining Foot Traffic Thriving in Early 2024?
Placer.ai White Paper Recap – February 2024
Three Retail & Dining Chains That May Surprise in 2024
Specialty Discount Chains Rock Retail Therapy
Placer.ai Mall Index: February 2024
Placer.ai Office Index: February 2024 Recap
Ulta Beauty Continues To Shine
First Watch Sails Into 2024
Hibbett Sports and DICK’S Sporting Goods: A Psychographic Analysis
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024: Placer.ai’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains
Placer.ai Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance
Placer.ai White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top
Placer.ai and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap
Placer.ai Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season
Placer.ai White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season
Placer.ai Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success
Placer.ai White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023
Placer.ai Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023