Macy’s decision to close its iconic store in San Francisco’s Union Square has once again highlighted the issue of retail theft, although the union representing workers at the store believes that shoplifting may have been used as an excuse for the closure. Jim Araby, director of strategic campaigns at United Food and Commercial Workers Local 5, expressed skepticism, suggesting that while shoplifting is indeed occurring and impacting the store, it may not be significant enough to justify its closure.
Reports from workers at the store cited “rampant” shoplifting as a factor contributing to the closure, as stated by the San Francisco Standard. However, San Francisco Mayor London Breed contradicted these claims, stating to local news station KRON4 that the closure was unrelated to crime.
“It’s sad that after decades of being an iconic brand in a city like San Francisco, Macy’s decided to close the store entirely and walk away,” commented Araby. UFCW5, which represents approximately 400 members at the Union Square store, received news of the closure on Tuesday, the same day Macy’s announced plans to close 150 stores.
Macy’s described the closure of 150 “unproductive” stores by 2026, including 50 by the end of the current fiscal year, as part of a strategy to stimulate growth and rejuvenate the brand. A Macy’s spokesperson stated that the new strategy aims to create a more modern Macy’s Inc. and improve the customer experience. They intend to close approximately 150 Macy’s stores while investing further in their remaining 350 stores over the next three years. However, a final decision on specific locations has yet to be made.
If Macy’s decides to move forward with closing the Union Square location, it’s expected that the earliest it could happen would be in 2025, according to information obtained by MarketWatch. Analysts have highlighted that there are various factors contributing to the shrinkage in the retail industry beyond just theft. For instance, Target Corp.’s announcement of closing nine stores across four states last fall was closely examined in light of local crime rates and foot-traffic data.
Macy’s shares saw a decline of 7.7% at the end of Wednesday’s session. However, over the last three months, the stock has risen by 17.7%, surpassing the gain of 11.4% seen in the S&P 500 index.