In a significant shift within the retail industry, Macy's and Liberated Brands have announced the closure of numerous store locations as part of an overarching strategy to revitalize their financial standing. In January, Macy's revealed plans to shutter 66 non-go-forward store locations, contributing to a broader initiative of closing nearly 150 underproductive stores over the next three years. This move comes in tandem with Liberated Brands, Macy's parent company, filing for voluntary Chapter 11 bankruptcy, resulting in over 100 retail locations across the United States being affected. Meanwhile, Kohl's has also decided to close 27 underperforming stores, all set to cease operations by April.
The closures are not isolated incidents but part of a larger strategic initiative known as the Bold New Chapter strategy. Announced in February 2024, this plan aims to return the company to sustainable and profitable sales growth. The decision reflects a trend among department stores in the U.S. to restructure and enhance profitability amidst economic challenges. This trend includes brands like Quiksilver, Billabong, and Volcom, which will also see store closures across the nation.
Liberated Brands has acknowledged the challenges faced in recent times.
"The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll." – Liberated Brands
Despite these difficulties, there is optimism for the future.
"Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future." – Liberated Brands
Tom Kingsbury, CEO of Kohl's, emphasized the need for these decisive actions.
"As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams." – Tom Kingsbury, Kohl’s chief executive officer
The closures mark a significant chapter for these retail giants as they navigate through challenging economic conditions. The decision to close stores is part of a larger industry trend where traditional department stores are forced to adapt to changing consumer behaviors and financial realities. Despite repeated efforts to reach out, Liberated Brands has not yet responded to requests for comments from ABC News.
