Retail giants Macy's and Kohl's have announced plans to close...

     Retail giants Macy's and Kohl's have announced plans to close dozens of stores across the United States in 2025, marking a significant shift in the retail landscape. This move comes as part of broader strategies to optimize their operations and adapt to changing consumer behaviors.

     Macy's will close 66 locations in the first quarter of 2025, affecting stores in 22 states. This is part of a larger initiative to shut down approximately 150 "underperforming" stores by 2026. Among the affected locations is the Macy's store at White Oaks Mall in Springfield, Illinois. Kohl's, on the other hand, plans to close 27 stores by April 2025. The company cites underperformance as the primary reason for these closures. Affected Kohl's locations include stores in Plainfield and West Dundee, Illinois, as well as outlets in various states such as Alabama, Arkansas, California, and Colorado.

      These closures reflect a broader trend in the retail industry, with over 7,100 stores shutting down through November 2024, representing a 69% increase from the previous year. The shift is largely attributed to the growing popularity of online shopping and changing consumer preferences.

Both retailers are framing these closures as part of larger strategic initiatives:

• Macy's is implementing its "Bold New Chapter" strategy, which involves closing underperforming stores while investing more heavily in 350 locations that will remain open.
• Kohl's describes the closures as "select real estate changes" and maintains belief in the overall health of its profitable store base.

     Kohl's has stated that employees at affected stores will be offered either severance pay or the opportunity to seek work at another location. As the retail landscape continues to evolve, industry experts anticipate further integration of online and offline channels, with a focus on creating unique in-store experiences that cannot be replicated online