Insight Flash: Consumer Edge Data Examines Which Companies May Win or Lose from Macy’s Store Closures

In light of Macy’s announcement that they plan to close 150 underperforming Macy’s locations through 2026 and open 45 Bloomingdale’s and Bluemercury locations, we examine which companies could benefit or lose the most from these changes. Consumer Edge data shows that Macy’s and Bloomingdale’s shoppers are most likely to cross-shop at Old Navy and H&M and spend the most at Lululemon and Zara. While Macy’s is targeting underperforming stores to close, they could target locations with Lululemon and Zara shoppers to maximize their newly opened Bloomingdale’s stores. 

Macy’s Cross-Shop within Apparel, Accessories, & Footwear

Within the Apparel, Accessories & Footwear industry, CE data finds that Macy’s shoppers also shop at Old Navy and H&M the most, with a 34% and 26% overlap, respectively. Additionally, in the past year, Macy’s shoppers who also shopped at Lululemon and Zara spent $642 and $645, respectively,  on each of the brands, the most spent on any of the cross-shopped brands. These brands could see an increase in spend from Macy’s shoppers who lose access to a physical store due to the closures. 

*Consumer Edge Transact USA1 Cohort panel; discrete 364 days ending 03-10-2024

Bloomingdale’s Openings Pressure Lululemon and Zara

On the other side, we examine which brands could feel pressure due to newly opened Bloomingdale’s stores. Lululemon and Zara once again appear as highly cross-shopped brands and in this case of Bloomingdale’s shoppers, these shoppers spend $927 and $1,115 on average per year at Lululemon and Zara, respectively. As the Bloomingdale’s shoppers who shop at Lululemon and Zara are more valuable than the Macy’s shopper, these companies have more to lose than gain by a Bloomingdale’s store opening even if a Macy’s store closed in relative proximity.

*Consumer Edge Transact USA1 Cohort panel; discrete 364 days ending 03-10-2024

Bluemercury Openings Impact on Beauty Industry

The Macy’s news will also impact the beauty industry as the company plans to open Bluemercury locations. In the past year, Bluemercury shoppers also shopped and spent the most at Sephora, 68% of Bluemercury shoppers also shopped at Sephora and, on average, they spent $955 in the past year.   

*Consumer Edge Transact USA1 Cohort panel; discrete 364 days ending 03-10-2024

Consumer Edge Data Points to Possible New Store Locations

Finally, while Macy’s didn’t announce which stores they would be closing and where they would be opening new locations, we use CE data to examine which areas of the United States the company could target their growth. Using Lululemon and Zara shoppers as a proxy for where Macy’s would want to target their growth, we find that on average, Lululemon and Zara are over-indexed by spend to th Des Moines-Ames-West Des Moines, Detroit-Warren-Ann Arbor, Dallas-Fort Worth, Charlotte-Concord, and El Paso-Las Cruces CSAs while Bloomingdale’s and Macy’s are relatively under-indexed. CE data shows that these areas could be lucrative if they opened a Bloomingdale’s store and drew some of these shoppers.      

From apparel, accessories, and footwear to beauty and the broader retail landscape, CE data offers an exciting glimpse into market intelligence based on consumer spending behavior like store openings and closures, as well as other disruptive retail events across the globe.

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using CE Transact US, CE Vision, or other products for Apparel, Accessories, and Footwear insights, retail data, and other industry data year-round to track trends like these, reach out to schedule a demo.

About the Authors

Katherine Bjorkman is the Director of Insights for the CEIC. Explore more of her insights here and follow her on LinkedIn.

Rachel Zucker is an Insights Analyst for the CEIC. Follow her on LinkedIn.