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.
What’s in Store for Self-Storage?
Nike + lululemon Update: Strong Performance Amid Expansion Plans
Many Ways to Win: Midwest Grocery Deep Dive
Retail, Reinvented: The Rise of the Pop-Up Shop
Navigating a New Normal in Business Travel & Commutes
Placer.ai Office Index: February 2023 Recap
Retail Categories Staying Strong in Volatile Environment
Ulta Beauty: Poised for Success into 2023
Placer.ai Mall Index February 2023: Reasons for Continued Optimism
Catching Up With DICK’s & Hibbett
The Miami-Dade Arena: An Advertising Slam Dunk
Car Washes Revving Up Visits
Tuesday Morning and Sunrises in Home Furnishing
Dining & Valentine’s Day Recap
2023: The Year of the Discount Store
Aldi’s Success Highlights Growing Demand for Value Groceries
5 Retail & Service Categories Holding onto Pandemic Gains in 2023
Visitor Insights from Super Bowl 2023
2023 First Look: Home Improvement Update
How Are Target, Walmart, and Wholesale Clubs Faring in 2023?
Department Store Deep-Dive: Nordstrom
Off-Price: Taking Off in Uncertain Times
Checking in On Middle-Class Hubs
Who Attends the Super Bowl?
Placer.ai Office Index: January 2023 Recap
Focusing On Fitness: Q4 and January Recap
Placer.ai Mall Index: January 2023 – Returning Mall Normalcy?
Location Intelligence Insights Into Concert Attendance
Winning Dining Strategies for 2023
In-N-Out Burger: What to Expect as the Brand Moves East
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Migration Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In
Placer.ai’s Q4 2022 Quarterly Index
Placer.ai Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023
Placer.ai Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
Announcing Placer.ai’s COVID RECOVERY DASHBOARD
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight
Three Ways Retailers Can Think Small to Increase Store Impact
Offline Beauty Is on an Upswing
The Evolving Migration Patterns of New York’s Florida Snowbirds
Placer.ai Office Index: November 2022 Recap
How Viral Social Media Trends Can Drive Offline Engagement
Are You Ready for Some Football? Experiential Marketing Shows Promise
Mall and Shopping Center Trends For 2023
Retail Corridors and Indoor Malls: A Holiday Head-to-Head
Placer Bytes: Nike, lululemon, and GameStop Update
Placer.ai Mall Indexes: November 2022 Update
Black Friday 2022: Consumers Hear the Call
Digitally Native Brands: Taking Off, Offline
Discount and Dollar Stores Leading the Pack
Turkey Wednesday 2022
Retail’s Evolving Holiday Season
Placer Bytes: Starbucks and Department Stores Ahead of Black Friday
Ulta: A Force to be Reckoned With
College Towns Drive Dining Growth
Foot Traffic Trends Reveal Consumers Ready for Holiday Cheer
How Retailers Can Win Big By Going Small
How Are Consumers Feeling Ahead of Black Friday 2022?
Off-Price, Hibbett, and Dick’s Pre-Holiday Check-in
Ho, Ho, Wholesale: Costco, Sam’s Club, and BJ’s
October 2022’s Retail Rebound
Target and Walmart Ahead of the Holidays
Home Improvement: Leave it to the Pros
Despite Inflation, Holiday Season is Off to a Good Start
Placer.ai Office Index: October 2022 Recap
Placer.ai Mall Indexes- October 2022 Update
Americans Double Down on Fitness
The State of Grocery
CVS and Walgreens: The Wave Continues
Coffee Chains Brewing Up Visits
Placer.ai Spotlight: Pizza Players
What Drove COVID-Era Urban Migration Trends?
Kroger and Albertsons: A Merging of Strengths
Texas Roadhouse Innovations Dishing Up Success
Holidays on the Horizon: Mid-Range and Luxury Shopping
McDonald's and Chipotle's Post-Pandemic Success
Announcing Placer.ai’s Q3 2022 Quarterly Index
5 Hot Restaurant Brands for 2023
Target Finds a Winning Deals Day Formula
Five Trends to Watch for 2022’s Holiday Shopping Season