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Iconic Macy's is Shutting Down Shops Across America; Here's who Employees Blame

Mayor London Breed said crime in the city has gone down, and she believes it has nothing to do with the store closure.
PUBLISHED MAR 16, 2024
Cover Image Source: The Macy's flagship Union Square store | Getty images | Photo by Justin
Cover Image Source: The Macy's flagship Union Square store | Getty images | Photo by Justin

At a time when e-commerce platforms are taking over, brick-and-mortar stores are finding it hard to move forward, and this has seen several iconic establishments shutting shop. After 77 years of operation, Macy's Iconic Union Square shop in San Francisco is set to close down, and employees blame it on a large number of people stealing from the store. Macy's had earlier announced that they would be cutting around 2,350 positions, or 3.5%, from its staff. In addition, Macy's announced that it will close five large mall locations, adding to the approximately 80 locations that it closed last year. In the next three years, 150 stores will be shut down, marking a slow departure for the retail chain.

Image Source:  Customers enter a Macy's store that is set to close at Bay Fair Mall. Macy's announced plans to shutter 150 underperforming stores across the United States| Photo by Justin Sullivan/Getty Images
Customers enter a Macy's store that is set to close at Bay Fair Mall | Photo by Justin Sullivan/Getty Images

Some employees at the Union Square store mentioned that theft is a big problem there. Steve Dalisay, one of the employees, said it's happening every day. Even though many people are unhappy about the store closing, the Mayor of San Francisco, London Breed said it's not because of crime in the area. She mentioned that crime went down during the holidays last year. But Dalisay explained that things like blazers, wallets, and boxer briefs are commonly stolen items with about 10 wallets and 20 briefs disappearing each day.

Dalisay also said that thieves also take about four blazers every day. "I believe there needs to be strong leadership," Dalisay emphasized. "The mayor should make it clear that we won't stand for this in our city." Another employee who has worked there for more than ten years said that the increasing theft is the main reason why multiple stores are closing. "It's the stealing, and fewer people are coming in," the employee stated. "It's pretty much the same situation that happened to Nordstrom is happening to us."

A third worker added, "I'm not responsible for calculating how much we lose each day, but last year, we were told the losses were in the millions. It's a significant problem.  The worker also mentioned that teenagers often target the fragrance department and try to steal the fragrance boxes, recently, one of them managed to steal a pair of Fendi sunglasses worth around $2,000.

Image Source:  A shopper carries a Macy's bag as she leaves a Macy's store | Photo by Justin Sullivan | Getty Images
A shopper carries a Macy's bag as she leaves a Macy's store | Photo by Justin Sullivan | Getty Images

Some experts argue that the increasing crime rates have contributed to what's being termed the 'retail apocalypse' sweeping the nation. Employees at Macy's flagship store in Union Square, San Francisco, attribute the planned closure to rampant shoplifting despite Mayor London Breed refuting crime as a factor. Others suggest that the declining spending power of the middle class also plays a role, with consumers gravitating towards budget-friendly options.

Image Source:  Signs are posted at the entrance to a Macy's store that is set to close at Bay Fair Mall| Photo by Justin Sullivan | Getty Images
Signs are posted at the entrance to a Macy's store that is set to close at Bay Fair Mall| Photo by Justin Sullivan | Getty Images

"There's a clear division in the retail landscape," observed Sunny Zheng, a research analyst at Coresight. "Discounters and luxury retailers are gaining ground while the middle sector is shrinking." Zheng pointed out that Amazon, Target, and Walmart offer a broader range of products at more competitive prices. However, Neil Saunders, another expert noted that many mid-range brands still perform well. "While the middle class may feel squeezed, the market itself hasn't disappeared – shoppers are simply patronizing different retailers," Saunders explained. He further commented, "Department stores occupy the middle ground, but they lack excitement. They're not the preferred shopping destinations for many."

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