What: Macy’s has decided to close 2 of its 546 stores in the US to convert them into fulfillment centers for the Christmas season.

Why it is important: In the Dover Mall, closing Macy’s will leave open only 2 of its initial 4 anchors: JC Penney and Boscov’s. Sears closed in 2018 and Macy’s has not communicated on a date, not even on an “if” they will reopen this unit. The acceleration of giant department stores chains into smaller formats forces them to review what to do with their larger units, which has a domino consequence on malls in the US.

Macy’s launched a pilot operation in prevision of the Holiday season, by converting 2 stores into fulfillment centers. They expect traffic instore during the season to lower by 22 to 25% YoY and therefore are exploring new ways to make the most of their spaces. One can wonder how this translates into the management of the workforce, and if sales staff are replaced, or converted, into warehousing teams. Macy’s remains vague on the number of stores it is planning to convert, as well as on the return to their original functions after the season. It could also be seen as a last chance opportunity for losses making units, to see if they can cater to other needs, before considering total closure at a moment when Macy’s and sister company Bloomingdales are going into smaller, more local stores.

Dover Mall Macy's serving as fulfillment center during holiday season