In a surprising move, Macy’s Inc. has announced the closure of its iconic store in San Francisco’s Union Square, sparking a debate about the role of retail theft in the decision. The union representing workers at the store, United Food and Commercial Workers Local 5, has raised concerns that shoplifting may have been used as an excuse for the closure rather than the primary reason.
While workers at the store have reported “rampant” shoplifting as a major issue, San Francisco Mayor London Breed has contradicted these claims, stating that the closure is not related to crime. The closure was revealed to employees on the same day that Macy’s unveiled a plan to shut down 150 stores, including the Union Square location.
Macy’s has explained that the decision to close underperforming stores is part of a larger strategy to boost growth and rejuvenate the brand. The closure of the Union Square store is still being evaluated, but analysts have noted that retail-industry shrinkage involves a variety of factors beyond theft, such as local crime rates and foot-traffic data.
Following the news, Macy’s shares plummeted 7.7% during Wednesday’s session, despite having risen 17.7% over the last three months. The closure of the Union Square location serves as a reminder of the challenges facing brick-and-mortar retailers in today’s competitive market.
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