How America’s once great department stores became a dying breed

Macy’s announcement Tuesday that it will close 150 stores, or nearly a third of its total, is the result of a once-great department store industry in decades of decline.

Macy’s announcement Tuesday that it will close 150 stores, or nearly a third of its total, is the result of a once-great department store industry in decades of decline. The gradual demise of the American department store can be blamed on many factors: competition from big box retailers, a shift to online shopping and activist shareholders fighting for control of the company’s board. Another key problem: The retail industry has been split in two as inflation has taken its toll. That means brand like Walmart that are focused on inexpensive items are succeeding, as are luxury brand for people who still have means to afford finer items. But department stores, focused on America’s middle class, are fading. But to retail analyst Neil Sauders of GlobalData, the key problem for Macy’s and many other troubled department store chains is more fundamental: Company management did little to update their offerings to compete with new rivals over the years. “Quite frankly, a lot of them stopped caring. They stopped listening to customers,” he said. “Sure online has taken its share, sure big box has taken its share. But most of all, it’s a failure to evolve.” Department stores were once the giants of American retail. Macy’s, Sears, and JC Penney offered a selection of products and convenience for shoppers that reshaped how and where Americans bought everything they needed for their homes, from clothing to appliances to toys to electronics.