Macy’s San Francisco Store Closure Sparks Controversy Over Shoplifting Claims
In a surprising turn of events, Macy’s Inc. announced the closure of its iconic Union Square store in San Francisco, and the reason given was rampant shoplifting. However, the union representing the store’s workers believes that shoplifting may have just been an excuse for the closure.
The announcement has stirred up a heated debate, with the United Food and Commercial Workers Local 5 claiming that Macy’s had been planning to close the store for years and that shoplifting was only a minor factor in their decision. Jim Araby, director of strategic campaigns at UFCW Local 5, stated, “I don’t deny that [shoplifting is] happening, I don’t deny that it’s having an impact… but I don’t think it is enough impact on their bottom line to want to close their store.”
On the other hand, the San Francisco Standard reported that workers at the store identified rampant shoplifting as the primary reason for the closure. However, San Francisco Mayor London Breed contradicted these claims, stating that the closure was unrelated to crime.
Macy’s spokesperson released a statement explaining their decision to close 150 “unproductive” stores by 2026, with 50 closures planned by the end of the current fiscal year. The company aims to boost growth and revitalize the brand through this restructuring. They emphasized their commitment to enhancing the customer experience and investing in their remaining stores.
While the specific locations for closure have yet to be determined, analysts argue that retail shrink is a complex issue that goes beyond just theft. They point to Target Corp.’s announcement of closing nine stores across four states last fall, which was influenced by local crime rates and foot-traffic data.
The closure of Macy’s Union Square store has significant implications for both the company and the city of San Francisco. The store has been an iconic brand in the city for decades, making its closure a sad event according to Araby. The Union Square store currently employs around 400 workers, all of whom will be affected by the closure.
Macy’s shares took a hit following the announcement, with a 7.7% drop at the end of the trading session. However, the stock has seen a 17.7% increase over the last three months, outperforming the S&P 500 index.
As the debate continues and an evaluation of the Union Square location is underway, it remains to be seen whether Macy’s will proceed with the closure. If they do, the earliest possible date for the closure would be 2025.
The closure of such an iconic store raises questions about the future of retail in San Francisco and the impact of shoplifting on businesses. It also highlights the broader issue of retail shrinkage and the various factors that contribute to it.
