Macy’s makes unexpected closures as customers cut back

Core Insights - Macy's has been facing challenges in attracting customers amid economic uncertainty, with a reported 0.6% year-over-year decline in net sales for Q3 2025 [1] - The company's net income fell by 60% compared to the same period in 2024, indicating significant financial strain [2] - Macy's CEO highlighted that consumers are becoming more discerning in their spending habits, influenced by previous price increases due to tariffs [3] Sales and Foot Traffic - Net sales at Macy's stores decreased by 2.3% during the third quarter [2] - Foot traffic at Macy's locations declined by nearly 11% year-over-year [2] Consumer Sentiment - A significant portion of U.S. consumers (59%) feel cautious or pessimistic about the economy, with 71% citing higher prices as their primary concern [8] - Many consumers are seeking deals more frequently (38%) and are spending less overall (34%) [8] Cost-Cutting Measures - Macy's is closing its fulfillment center in Cheshire, Connecticut, resulting in 993 layoffs over several months [5] - The company is also closing its fulfillment center in Tulsa, Oklahoma, as part of its cost-cutting strategy [10] Strategic Initiatives - Macy's is implementing its "Bold New Chapter" strategy, which aims to streamline operations and improve inventory management, with an expected cost savings of $235 million by the end of the year [11][12] - The company plans to close 150 underperforming stores as part of this strategy [12] Workforce Trends - Macy's layoffs are part of a broader trend among companies restructuring their workforces amid economic challenges and the rise of artificial intelligence [13] - A survey indicates that 55% of companies expect to conduct layoffs in 2026, with AI being a significant factor [17]