Many people think that retailers have suffered because consumers have stopped going to malls.

The reality is that while purchasing patterns have changed, traffic has not had some major dropoff. People still go to malls, but they might spend less time there. And that’s a failure of the retailers, not the malls.

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While mall traffic varies month to month, it was relatively flat in February

“Comparing [year over year] at average daily visits — a more accurate analysis of YoY performance when comparing a regular year to a leap year — reveals that visits to indoor malls and open-air shopping centers held relatively stable in February 2025, despite the sharp drop in consumer confidence,” according to Placer.ai data. 

“And both mall types outperformed the wider retail YoY average, highlighting the ongoing resilience of the retail format.”

Traffic eased 0.4%, but if you factor in the missing day, that figure adjusts to more or less even. But even if you do not correct for the missing day, it’s hard to blame malls for not doing their part in getting people into stores.

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“The steady February foot traffic coupled with strong engagement on key holidays like Valentine’s Day underscores the enduring role of malls as more than just shopping destinations,” the location- and brand-analytics provider reported. 

“As we move further into 2025, the ability of malls to adapt and cater to evolving consumer behaviors will remain a critical factor in their continued success,” 

Yes, malls are changing, but the malls themselves don’t explain why so many retailers are closing stores or going bankrupt. It’s also not fair to blame the malls for the continued erosion of an iconic anchor store chain.

Top-tier malls have generally done well despite growing online sales.

Image source: Getty Images

Macy’s has struggled while making changes

Many retailers have struggled with competition from both online retail and other brick-and-mortar stores. 

Online retailers have not struck a fatal blow against physical retailers. In fourth-quarter 2024 online retail sales were 16.4%, about a sixth, of the total. That’s the highest they have ever been, asice from during the Covid pandemic, but it’s not a large enough number to explain why many brick-and-mortar retailers have struggled.

Macy’s has been one of those chains steadily shedding stores for a number of years. Now, th chains will close nearly 70 more locations, although it hasn’t finally decided which stores it will shutter.

The chain, it should be noted, is not in significant financial peril. It has to make major changes and rightsize its business, but it still pays a dividend. On Feb. 28, in fact, the board lifted the quarterly payout by 5%, to 18.24 cents a share. The dividend is payable April 1 to shareholders of record March 14.

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So, while Macy must continue to make changes due to falling sales and changing market conditions, the company has been proactive, not reactive, to its problems.

Macy’s keeps closing more stores

Macy’s had a mixed quarter, reflecting the challenges it faces.

For the fourth quarter ended Feb. 1 the retail chain reported comparable sales fell 1.1% on an owned basis; and it achieved its best owned-plus-licensed-plus-marketplace comparable sales since first quarter 2022, up 0.2%. It also delivered GAAP diluted earnings per share of $1.21.

Those are reasonably healthy numbers, but the company has reached them partly by steadily closing underperforming stores.

Macy’s now has decided to close 66 stores and could close a few more based on their performance.

“This plan is designed to return the company to sustainable, profitable sales growth,” it said. It entails closing 150 “underproductive stores” over three years “while investing in its 350 go-forward Macy’s locations through fiscal 2026,” the company said.

Macy’s Chief Executive Tony Spring has made clear that he will sacrifice underperforming stores to improve the company’s finances.

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“Closing any store is never easy, but as part of our Bold New Chapter strategy, we are closing underproductive 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.

Macy’s ended its fiscal year with cash and cash equivalents of $1.3 billion. It also has $2.5 billion under its asset-based credit facility, Total debt to close the year was $2.8 billion with no short-term borrowings outstanding under its asset-based credit facility and no material long-term debt maturities until 2027.