123-year-old retailer, big box chain closing dozens of stores

Both chains have been struggling to stay afloat and have closed stores steadily.

Sep 21, 2025 - 08:30

123-year-old retailer, big box chain closing dozens of stores

It's lazy to blame the shrinking of classic mall anchors including Macy's and JCPenney on people not going to the mall. The problem, and it's a really big one, is that this is not actually true.

Traffic to top-level indoor malls has actually increased on a pretty steady basis. It hasn't been a huge increase every month on a year-over-year basis, but the numbers show that you can't blame a lack of people going to the mall for the many anchor stores that have, or are scheduled to, close.

Indoor mall foot traffic by month:

January, 2025: 4.67%
February, 2025: -4.2%
March, 2025: 0.9%
April, 2025: 2.8%
May, 2025: 6.3%
June, 2025: -1.1%
July, 2025: 1.1%
August, 2025: 0.08%

Source: Placer.ai via ChainStoreAge

Overall, across indoor, outdoor, and outlet malls, traffic has been okay, or good, depending upon how you look at it.

"According to the latest Placer.ai Mall Index for August 2025, visits to indoor malls increased 0.08% compared to the previous year, while open-air mall visits decreased 0.07% and trips to outlet malls were flat (0.0%). Despite the lack of annual growth, visits to malls rebounded from June and July after a strong April and May," according to the data.

The numbers may not be super strong, but they are hardly a catastrophic drop, and traffic is not why traditional mall anchors Macy's (M) and JCPenney have plans to close dozens of stores this year.

Here's why Macy's is closing stores

In January, Macy's confirmed the closure of 66 Macy’s non-go-forward store locations. These closures are part of the Bold New Chapter strategy announced in February 2024.

"This plan is designed to return the company to sustainable, profitable sales growth which includes closing approximately 150 underproductive stores over a three-year period while investing in its 350 go-forward Macy’s locations through fiscal 2026," the company shared in a press release.

Macy's CEO Tony Spring made it clear that it's difficult to make the decision to shut down any location. He explained, however, that it's needed.

“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing under-productive Macy’s stores to allow us to focus our resources and prioritize investments in our go-forward stores, where customers are already responding positively to better product offerings and elevated service,” he said.

David Swartz, a senior equity analyst at Morningstar, thinks that Macy's is making the right choice.

“It (store closures) was probably inevitable. It is still not good news, though, because it represents Macy's inability to make those stores more productive,” he told Reuters.

JCPenney has been strategically closing stores.
Image source: Shutterstock

Here's why JCPenney is closing stores

The retailer cited expiring lease agreements, market conditions, and other business as the reasons behind its decision to close a small number of stores. JCPenney shared a statement on the shutdowns.

"While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year. The decision to close a store is never an easy one, but isolated closures do happen from time to time due to expiring lease agreements, market changes or other factors. These closures are unrelated to the recent Catalyst Brands merger."

In January, JCPenney merged with SPARC Group to form Catalyst Brands, combining six major retail names including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.

“While JCPenney has been trying to reinvent itself, 2024 was another lost year and did nothing to prove that the business is on a path to success,” GlobalData Managing Director Neil Saunders told RetailDive.

Confirmed JCPenney store closures in 2025

JCPenney is planning to close eight stores by mid-2025.
These closures are described as “isolated store closures,” mainly due to expiring leases, market changes, etc. They are not tied to the company’s recent Catalyst Brands merger.