Macy’s (M) to Shutter More Department Stores in U.S.

Macy’s (M) has announced plans to close more department stores across the U.S. as it struggles financially.

The New York City-based company said it will close 66 stores as part of an ongoing strategy to control costs. The latest stores closures come months after Macy’s announced that it will close 150 “underproductive” stores over the course of three years.

Macy’s has struggled since most of its more than 700 department stores were forced to close or operate at reduced capacity during the Covid-19 pandemic. The company, which has been a going concern for nearly 100 years, saw its sales further erode during 2024.

Ongoing Struggles

Macy’s recently lowered its annual profit forecast due to weak demand for the apparel and shoes it sells. In addition to the pandemic, the department store company has struggled as consumers increasingly migrate to online shopping and e-commerce.

Macy’s has received several offers to be taken private, but has rejected all of those proposals. At the same time, the company has begun opening smaller stores in suburban strip malls and adding new locations of its better-performing brands Bloomingdale’s and Bluemercury to try and improve its finances.

M stock has declined 12% over the past year.

Is M Stock a Buy?

Macy’s stock currently has a consensus Hold rating among 11 Wall Street analysts. That rating is based on two Buy, eight Hold, and one Sell recommendations assigned in the last three months. The average M price target of $16.11 per share implies 0.50% upside from current levels.

Read more analyst ratings on M stock