In a sweeping move that signals a new era for brick‑and‑mortar retail, Macy’s announced today that its La Mesa, California, and Tracy, California, stores will close by the end of the year. The closures are part of a broader plan to trim the department‑store chain’s footprint by 30% by 2027, a strategy that will affect 14 locations nationwide and result in the loss of hundreds of jobs.
Background and Context
Macy’s, once the flagship of American department‑store culture, has been grappling with a sharp decline in foot traffic and a surge in online shopping. The pandemic accelerated a shift that retailers have been trying to reverse for years. In 2025, the company reported a 12% drop in same‑store sales, prompting a review of its physical assets. The decision to close the La Mesa and Tracy stores follows earlier shutterings in Simi Valley, Baldwin Hills, and downtown Los Angeles, and comes amid a broader retail contraction that includes giants like Kroger and At Home.
“Closing underperforming stores is not a decision we take lightly,” said Macy’s spokesperson Orlando Veras in an emailed statement. “But this focus enables us to deliver a stronger, more consistent Macy’s experience over the long term.” The company’s CEO, Tony Spring, echoed this sentiment in a recent press release, noting that the closures will free up capital to invest in its luxury brands, such as Bloomingdale’s, and to modernize its supply chain.
Under President Trump’s administration, the retail sector has faced new regulatory challenges, including tighter labor standards and increased scrutiny of corporate tax practices. These factors have added pressure on retailers to streamline operations and cut costs.
Key Developments
The La Mesa store, located in the historic downtown district, will begin clearance sales in mid‑January and close after a 10‑week sale period. The Tracy location, situated in a suburban mall, will follow a similar timeline. Both stores are expected to lose a combined 120 jobs, including sales associates, cashiers, and inventory staff. Macy’s has pledged to offer severance packages and outplacement services to affected employees.
In addition to the California closures, Macy’s will shutter 12 other stores across the country, including locations in Georgia, Maryland, Michigan, Minnesota, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Texas, and Washington. The company’s total store count will drop from 424 to 296 by 2027.
- Clearance Sales: Both stores will run a 10‑week clearance sale starting mid‑January.
- Severance: Affected employees will receive a severance package and outplacement support.
- Reinvestment: Proceeds will be redirected toward expanding luxury offerings and enhancing e‑commerce capabilities.
Impact Analysis
The closures will ripple through local economies, especially in communities that rely on retail jobs for income. In La Mesa, the store employed 45 people, many of whom are part of the city’s growing immigrant workforce. The loss of these jobs could increase unemployment rates in the area by 1.2% over the next year.
For international students, the impact is twofold. First, many students work part‑time in retail to support their studies. The loss of 120 positions means fewer opportunities for student employment, potentially affecting tuition payments and living expenses. Second, students who rely on Macy’s for affordable clothing and household items may find themselves turning to online alternatives, which can be more expensive and less accessible for those without reliable internet or credit.
“Retail closures are a reminder that the job market is shifting,” said Dr. Elena Ramirez, a labor economist at the University of California, Los Angeles. “Students need to diversify their skill sets and consider careers that are less vulnerable to physical store shutdowns.”
Expert Insights and Practical Tips
For students and recent graduates navigating the changing retail landscape, here are actionable steps to mitigate the impact of store closures:
- Update Your Resume: Highlight transferable skills such as customer service, inventory management, and cash handling. Emphasize any experience with e‑commerce platforms.
- Leverage Online Job Portals: Sites like Indeed, LinkedIn, and Handshake list openings in logistics, supply‑chain management, and digital marketing—fields that are expanding as retailers shift online.
- Network Strategically: Attend industry events, virtual career fairs, and alumni gatherings. Connections can lead to referrals in emerging retail tech companies.
- Consider Internships: Many companies are offering remote internships in data analytics, merchandising, and digital content creation. These roles can provide valuable experience and a foot in the door.
- Explore Alternative Income Streams: Freelance gigs, tutoring, or part‑time roles in hospitality can supplement income while you search for a new position.
- Stay Informed: Follow industry news through outlets like Retail Dive, Bloomberg Retail, and the Los Angeles Times to spot emerging opportunities.
Financial advisors recommend that students review their budgets and consider cutting discretionary spending. “The key is to build an emergency fund that covers at least three months of living expenses,” advises Maria Gonzales, a certified financial planner based in San Diego.
Looking Ahead
Macy’s is not alone in its restructuring. The retail sector is undergoing a transformation that favors omnichannel strategies, data‑driven merchandising, and experiential retail. Companies that can blend physical and digital experiences are likely to thrive. Macy’s plans to invest heavily in its online platform, including AI‑powered personalization and faster delivery options.
Meanwhile, the workforce will need to adapt. Upskilling in areas such as data analytics, digital marketing, and supply‑chain technology will become increasingly important. Employers are also looking for employees who can navigate both in‑store and online environments.
For students, this shift presents both challenges and opportunities. While traditional retail jobs may decline, new roles in e‑commerce, logistics, and tech are emerging. By proactively developing relevant skills and staying agile, students can position themselves for success in the evolving job market.
As the retail landscape continues to evolve, the closures of Macy’s La Mesa and Tracy stores serve as a stark reminder of the need for adaptability. Whether you’re a student, a seasoned employee, or a small business owner, staying informed and prepared will be key to navigating the changes ahead.
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