Department store giant Macy’s announced plans to shutter 65 more stores in 2024, adding to a growing list of closures that reflect the ongoing challenges facing brick-and-mortar retail in the face of e-commerce competition and shifting consumer habits. The company cited a need to optimize its store portfolio and adapt to evolving customer preferences as the driving force behind the decision.

While the exact locations of the 65 closures haven’t been publicly released yet, Macy’s indicated that the affected stores are predominantly underperforming locations. The company stressed its commitment to its remaining stores and its omnichannel strategy, emphasizing its investment in online platforms and fulfilling orders through its physical locations. This strategy, known as “buy online, pick up in store” (BOPIS), has proven increasingly popular with consumers seeking convenience and speed.

The announcement comes as no surprise to retail analysts who have observed the declining foot traffic in many malls and shopping centers. The rise of online shopping giants like Amazon has significantly impacted traditional department stores, forcing them to adapt or face closure. Macy’s has been proactively restructuring its operations in recent years, closing underperforming locations and investing in its digital presence. However, the scale of the latest announcement underscores the ongoing challenges the company, and the broader retail sector, continues to navigate.

The closure of 65 stores will likely result in job losses, though Macy’s has pledged to support affected employees through severance packages and potential placement opportunities within other company locations. The company also confirmed that it is exploring various options for the closed store locations, including potential redevelopment or sale.

This move marks a significant step in Macy’s ongoing transformation. While the closures represent a difficult but necessary step for the company’s long-term health, the future success of Macy’s will hinge on its ability to successfully integrate its online and offline operations and provide a compelling shopping experience that caters to the demands of today’s consumers.