Retail Apocalypse: Macy’s and Kohl’s Closures in 2025

So long, farewell to Macy’s and Kohl’s?

Last week, Macy’s and Kohl’s announced that the iconic stores would be closing down various locations, including many Macy’s stores in the tri-state area. As we say goodbye to these locations throughout the region, could we be saying goodbye to malls, mall culture, and shopping in person for good?

Macy’s is only one of several stores that have recently announced substantial closures, and recent reports indicate that we could be saying goodbye to in-person shopping a lot sooner than we think. While we wait and see if there are more closures in the future for Macy’s, we’re giving you all the details on which stores you can begin to say goodbye to.

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Macy’s Closures

This decision will likely affect various neighborhoods and shopping centers, impacting both consumers and employees in our area. In particular, the closures include three locations on Long Island, two in the borough of Brooklyn, one in the Bronx, and another in New Jersey. Macy’s explained that the primary reasons for closing these stores are underperformance and a strategic shift in resources to areas that have greater potential for growth.

Below is the list of the tri-state Macy’s stores that will be closing:

Essex Green Shopping Center, NJ
Lake Success Shopping Center in New Hyde Park, NY
Melville Mall, NY
Queens Place, NY
Sheepshead Bay, NY
Mall at Greece Ridge, NY
Sunrise Mall, NY
Downtown Brooklyn, NY
Staten Island Furniture, NY
Fordham Place, NY

These closures reflect Macy’s ongoing efforts to streamline operations and concentrate on more profitable locations as the retail landscape continues to evolve.

Kohl’s Closures

Both Macy’s and Kohl’s announced closures throughout the country on January 9th, with both referencing underperforming stores and the changing landscape of shopping today.

Kohl’s announced significant real estate changes for 2025, including the planned closure of its San Bernardino E-commerce Fulfillment Center (EFC) in May when the lease expires, along with the shutdown of 27 underperforming stores by April 2025. The San Bernardino facility has been operational since 2010 and is one of 15 EFCs and Distribution Centers in the company’s supply chain. They state that recent technological advancements at newer EFC facilities have allowed Kohl’s to enhance efficiency and fulfill customer orders from store locations, making the closure of the San Bernardino facility possible.

The closures involve specific underperforming locations from Kohl’s portfolio of over 1,150 stores. According to the press release, all affected associates have been informed and are being offered a competitive severance package or the opportunity to apply for other open roles within the company.

Kohl’s CEO, Tom Kingsbury, emphasized the seriousness of these decisions. In the press release, Kingsbury shared, “We always take these decisions very seriously; as we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams.”

Closures Throughout the Country

Data from Capital One Shopping Research shows that shopping malls in the U.S. are facing serious challenges. As of the end of 2023, the overall vacancy rate for malls has reached 8.6%. Class C malls are struggling even more, with a vacancy rate of 10.2%. Between 2017 and 2022, about 1,170 malls closed each year, leading to a big loss of retail space.

To deal with these challenges, mall management and stakeholders are looking to adapt to how consumers shop today. With more people shopping online, malls, shopping centers, and iconic chains are either closing down or looking to find new ways to attract shoppers.

Today, empty malls are being repurposed, with 31% attracting pop-up shops and 16% reopening as mixed-use centers. Other transformations include warehouses (8%), residential housing (7%), and community facilities (4% each). Overall, 25% of vacant malls are finding new uses, and 20% are undergoing rezoning. Financing primarily comes from banks (41%), retail real estate investment trusts (18%), and private investors (17%).

Are you ready to say goodbye to mall culture and shopping in person?

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