Macy’s has long been a household name in the United States. Every Thanksgiving, the streets of New York City are filled with life and celebration during the Macy’s Thanksgiving Day Parade. It is one of many stores well-known to Americans nationwide and seen as an example of the American way of life. Yet this may change here in Athens, Georgia.
The Macy’s at Georgia Square Mall will be one of 68 Macy’s department stores slated to close early this year. It is also the only store in Georgia that will be closing.
This move is part of a larger plan by Macy’s to close 100 stores nationwide over the next few years. This represents about 15 percent of its total store base according to Business Insider.
Nearly 4,000 employees will be affected as a result, and while some will find employment at nearby stores, most face losing their jobs completely as reported by the Athens Banner-Herald’s AthensOnline. IT IS ACTUALLY ONLINE ATHENS – TWO WORDS – It also reports that further restructuring in the company will see the loss of an additional 6,200 jobs nationwide.
Why? Macy’s has faced hardship in the recent economic downturns. The company’s net income, meaning the total remaining after subtracting the various costs of running the business from the total profits of the company and thus its total balance with which to begin the new year, last year was $1.07 million. In 2015 and 2014 it was approximately $1.53 million and $1.49 million, respectively. This would mean a loss in net income around $450,000 between the years 2016 and 2015, a stark contrast to the still relatively small gain of $460,000 between the years 2015 and 2014. Recent economic downturns have impacted multiple large companies and department stores around the country.
This year’s breaking announcement from Macy’s also sets a very different tone than previous announcements. Six years ago, Macy’s announced the roll-out of its Backstage Pass program that relied on QR technology to bring costumers exciting fashion and industry tips from high-brow names and designers as well as a chance to win a daily $500 shopping spree according to a press release through Business Wire in 2011. Six years before that, Business Wire covered Macy’s launch of its Star Rewards program in 2005. This was also aimed to increase the customer’s shopping experience and promote customer loyalty, but as the funds have dried up, so has Macy’s customer outreach programs.
Mr. Auguste ✨🌹 on Twitter: “Dear @Macys you’re not allowed to aggressively hang banners about “nothing held back” then discount merch at ur closing store at 10-20% nope pic.twitter.com/FQpHrIW2uU / Twitter”
Dear @Macys you’re not allowed to aggressively hang banners about “nothing held back” then discount merch at ur closing store at 10-20% nope pic.twitter.com/FQpHrIW2uU
One shopper, among many others, took to Twitter to voice his opinion on a Macy’s store’s closing.
“All I can say is, that’s bad news,” Online Athens quoted Athens-Clarke County Commissioner Jerry NeSmith when asked about the mall’s store closing. Online Athens also quoted the marketing director for the mall, Monica Hawkins, as saying, “The mall is actively in discussions to buy that space from Macy’s with the intent of backfilling it.” No further news about Macy’s successor has appeared.
This will mark the first time since 1981 that the 121 thousand square feet space will not be the home of a Macy’s department store.