Struggling fashion retail chain closed 28 store with more coming
The chain has decided that it needs to be smaller in order to survive.
Traditionally, retail chains that aren't growing are dying.
That has changed in the modern era where many retailers have made careful decisions to get smaller in order to get healthier. It's actually hard to know if that's a successful strategy, but Macy's, J.C, Penney, Gamestop, and multiple other major chains have been selectively closing stores.
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In theory, it makes sense to get rid of stores that can't make money. The challenge, however, is when to decide that a store can't be saved.
Macy's has actually closed breakeven stores as its brick-and-mortar footprint has dramatically shrunk. It's difficult to measure the impact of physical stores on digital sales.
Closing a significant number of locations could lead to consumers forgetting about the brand. It's a sort of out-of-sight, out-of-mind situation. There's also the added benefit of customers in brick-and-mortar stores being able to go online when the store does not have their size.
