SANDY, Utah (ABC4 News) – Macy’s announced the closure of dozens of stores across the country, and one of the stores on the list is the South Town Store in Sandy.
A year ago, Macy’s announced a plan to turn the company around, which included dropping about 25% of its big stores.
Now the company has announced the largest group of store closings. And the South Town location is on the list. The Macy’s store at Valley Fair Mall has already closed.
In a statement, Macy’s said, “After careful consideration, Macy’s has decided to close our South Town Center location. This closure is part of the company’s strategy announced in early 2020.
Macy’s previously shared this information with our valued colleagues. Regular, non-seasonal colleagues who we are unable to place at nearby Macy’s store will be eligible for severance, including outplacement resources. ”
Darin Grigg, General Manager over the Shops at South Town said, “Macy’s has been an asset to The Shops at South Town for many years. Although we are disappointed with their business decision to close, this is an opportunity to continue to evolve our property to meet the needs of the community. Our biggest concern at this time is the affected number of Macy’s employees, which we will assist during the transitional time in the months to come.”
“The store is currently open for business as usual, and a clearance sale will begin in May and run for approximately 10-11 weeks,” Macy’s says.
After the South Town store closes, Utah will have two Macy’s stores- one at City Creek in Downtown SLC and one at Fashion Place in Murray.
Fortune.com reported, “The move is not surprising given that nearly 40% of Macy’s revenue is now coming from its online business and given the expense of running stores in a fiscal year in which the com has reported a net loss of $4 billion during the first three quarters.”
Macy’s adds, “The decision to close a store is always a difficult one, but Macy’s South Towne Center is honored to have served our customers and the community over the past 34 years, and we look forward to continuing to do so at Macy’s Fashion Place, Macy’s City Creek Center, and online at macys.com.”
The closings are not a complete result of the pandemic. Macy’s has been struggling since before the pandemic hit, according to a report from Business Insider.
“Macy’s was already struggling before COVID-19 hit, with sales down year over year in Q4 of 2019,” the report states. “In Q3 of 2020, sales were down more than 20% overall, although digital sales did grow.”
In the past year, the pandemic has been tough on many retailers, with companies like J.C. Penney, Pier 1, GNC, Guitar Center, and Neiman Marcus all filing bankruptcy.