Macy’s has now reportedly said it will close 65 stores this year, an increase from the 50 locations it previously announced it would terminate by the end of the fiscal year.
The closures are part of its plan to eradicate roughly 150 underperforming stores over the next three years.
The department store chain made the update public in its third quarter earnings call Wednesday.
Macy’s had delayed reporting its third-quarter earnings after an employee concealed up to $151 million in expenses related to delivering small packages.
The retailer, which also owns Bloomingdale’s and Bluemercury, last month said it detected the accounting issue on one of its accrual accounts while preparing its quarterly financial statements.
Adrian Mitchel, chief operating officer and chief financial officer at Macy’s, said the error “was not theft” and that there was no impact to revenues.
The company said is overhauling its governance over financial reporting.
Macy’s isn’t alone in shuttering brick-and-mortar locations.
The retailer’s acceleration of store closures comes as department stores struggle, with fewer consumers visiting malls and more Americans making purchases online.
U.S. retailers have announced more than 7,100 store closures through the end of November 2024.
That represents a 69% rise from the same time last year, according to recent data from research firm CoreSight.
Forty-five retailers have filed for bankruptcy protection so far this year, compared with 25 retail bankruptcies in all of 2023, the report found.
Macy’s, meanwhile, is betting on the success of its other brands, Bloomingdale’s and Bluemercury.
It intends to open 15 Bloomingdale’s stores and 30 Bluemercury locations over the next three years, while also remodeling about 30 existing Bluemercury stores, the company said.
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