Economic Impact of Macy's Closures, Sephora Openings

Feb 5, 2020

2 min

On February 4, Macy's announced that it will lay off 2,000 employees at corporate-level positions and close 125 stores over the next three years. They will also look to open smaller store concepts in shopping center locations, which have become more popular destinations for consumers than shopping malls.


On the same day, Sephora announced it was going to open 100 stores in 2020.


Villanova's David Fiorenza, an assistant professor of economics, has provided comments on both retailers' moves:


  • "Macy's closing about 125 stores with a couple thousand jobs lost is basic economics. Supply and demand has been changing for many years, as people are shopping online, visiting boutique stores, travelling to smaller stores in strip malls, and visiting the urban-style malls that are popping up in suburban towns. These town centers, like King of Prussia Town Center, offer everything a mall or city shopping district does—but with smaller stores such as Sephora or Ulta."


  • "Specialty stores like Sephora and Ulta will continue to see good growth in 2020 and beyond, as this is one area of retail that cannot be replaced with online shopping. The servicing of makeup, cosmetics, hair salons and fragrances needs to be experienced in a store with a knowledgeable sales representative."


  • "The cosmetics counters in the large stores that are anchors in malls, such as Nordstrom, Neiman Marcus and Bloomingdale's, continue to show strong sales. However, in other departments within these stores, the sales are flat or declining." 


  • "Most of the smaller strip malls and suburban town centers do not have the competition you see at the larger malls." 


  • "Since the economy has been thriving for some time now, people have more discretionary income to spend. This is another bonus for Sephora and even Ulta to expand."


  • "Macy's is a great organization but some of the stores look old and tired, similar to what happened with Toys 'R' Us' shops. I can see Macy's opening smaller boutiques, like what Best Buy has done, or discount stores, like Nordstrom Rack." 


  • "Landlords in these small strip centers and urban centers look for a certain type of business, and the large format of Macy's does not work at this point."
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Villanova Sports Business Expert Bret Myers, PhD, Previews the World Cup featured image

4 min

Villanova Sports Business Expert Bret Myers, PhD, Previews the World Cup

Move over, American football fans. Hello, American… fútbol fans. Soon, the homes of NFL franchises like the Chicago Bears, Dallas Cowboys and Philadelphia Eagles will play host to the 2026 FIFA World Cup, returning to the United States for the first time in 32 years. Through five-plus weeks of action-packed matches, soccer lovers from across the country—alongside more than 1.2 million international visitors—will flock to the nation’s metro areas to take in and celebrate the “beautiful game,” contributing to an atmosphere of revelry, drama and overall excitement. One person adding to the chorus of “olé”s will be Bret Myers, PhD, a sports business expert and professor of the practice of Management and Operations at Villanova University. Formerly a consultant with the Philadelphia Union, the Columbus Crew and Toronto FC, he recently shared some thoughts concerning the upcoming World Cup, its stateside appeal and the latest developments relating to the international contest. Q: The last World Cup game played on U.S. soil took place in 1994. How has soccer’s profile, and the American relationship with the sport, evolved since then? Dr. Myers: Undoubtedly, soccer has grown in this country since 1994 across all relevant metrics—namely, youth participation and academy development, domestic professional league development, TV and streaming viewership and the strength of the national team. A recent Economist survey even identified soccer as the third most popular sport in the country. A lot of that can be attributed to different demographic trends. Many Gen Xers grew up playing and following the sport, and Millennials and younger have become accustomed to engaging with it through social media. The popularity of EA Sports’ FIFA on gaming consoles has also helped with brand and player recognitions domestically. That said, while there have been many positive signs of growth, it is still a complex landscape in the U.S. Major League Soccer (MLS) has increased in quality over its 30 years of existence, but it has been challenging for them to carry the same kind of stature and appeal as the English Premier League, Mexico’s Liga MX, Spain’s La Liga and Germany’s Bundesliga—whose global broadcast rights and merchandising have attracted a lot of American fans due to higher standards of play and tradition. Q: How effective are promotions surrounding the World Cup? And do domestic professional and youth soccer teams benefit from the interest cultivated? DM: Honestly, it doesn’t take much to generate interest in World Cup games. Back in 1994, promotional efforts were arguably more important because soccer was in its infant stages of growth in the U.S., and the ticket prices were accordingly much lower, to spur demand. For this year’s World Cup, there’s an inverse problem. There is so much demand that FIFA is capitalizing with high ticket prices, unfortunately pricing out a lot of avid soccer fans. As for youth soccer and MLS, I don’t see a direct relationship between the promotional effort for the World Cup and the dynamics there. Participation in youth soccer is already high, and it has become a very competitive landscape with a lot of different tiers across multiple age groups, male and female. Meanwhile, MLS interest and ticket sales really boil down to the talent the league attracts. For instance, Lionel Messi’s decision to sign with Inter Miami was an enormous lift factor, bumping up attendance levels and increasing revenue levels for tickets, sponsorships and broadcast rights. Q: This year’s competition marks the first that will feature 48 teams, up from 32 previously. Could you speak about the logic and potential benefits of boosting the number of participants? DM: With the expansion of the World Cup field, there are certainly revenue benefits that come with more matches, more ticket sales, more consumption by fans and more viewership potential. That is the business side of things. From a competition standpoint, the clear beneficiaries are the smaller nations from less competitive continents that get the opportunity to participate, like Curaçao and Cape Verde. These teams are not going to win the World Cup, but they will make things interesting at times in the group phase, as there is always the potential for a surprise knockout or qualification for the next stage. Q: As Sports Illustrated reports, a series of rule changes have been put into effect for the World Cup to “maximize fairness and eliminate the dark arts.” Do you see any of these tweaks meaningfully impacting the product on the pitch? DM: While I think it’s good that FIFA is continuing to examine how to make the game safer, fairer and more exciting, I don’t think the World Cup is the place to experiment. Players should have the chance to get accustomed to rule changes during other types of competitions, so that they can better understand how they are being enforced. That said, in the long term, I think the proposed changes [aimed at preventing time-wasting and feigned injuries] will impact the sport positively. On-field theatrics compromise the integrity of the game, and most fans pick up on it and don’t appreciate it. Q: What elements of the upcoming tourney have you most excited? Are there any particular trends or stories you suggest fans track? DM: Personally, I’m satisfied to see that certain players are defying the traditional notion of an “age curve.” Many countries have players over 35 on their roster, with some of the bigger names being Messi (38), Cristiano Ronaldo (41) and U.S. team captain Tim Ream (38). It is also interesting to see the other end of the spectrum, with emerging talents like Spain’s Lamine Yamal (18) and Brazil’s Estêvão (19). With all the “GOATs” and “young bucks,” it isn’t exactly clear who is effectively the best player in the world right now. It’ll be interesting to see who emerges at the end of the World Cup to stake a claim.

Pope Leo XIV Releases First Encyclical, "Magnifica Humanitas" featured image

8 min

Pope Leo XIV Releases First Encyclical, "Magnifica Humanitas"

On May 25, 2026, Pope Leo XIV released his first papal encyclical, “Magnifica Humanitas: On Safeguarding the Human Person in the Time of Artificial Intelligence.” The letter—true to its title’s meaning of “magnificent humanity”—addresses how society, collectively, must preserve human virtues in a time of rapid technological advancement. The 42,000-word document features five distinct chapters, exploring various elements of the broader issue at hand and serving as a guidepost for moral and ethical use of technology, through the lens of Church teachings. It covers everything from the development and principles of Church social doctrine to technological responsibility, the culture of power, building civilization through love and preserving humanity through truth, work and freedom. “In recent years, it has become increasingly evident how rapidly and profoundly digitalization, artificial intelligence (AI) and robotics are transforming our world,” wrote Pope Leo in the encyclical’s introduction. “Technology should not be considered, in itself, as a force antagonistic to humanity. On the contrary… “Over the centuries, technological development has significantly improved the living conditions of humanity. At the same time, each phase of progress has also revealed the ambiguity of tools that can cause harm when not oriented toward the good… The power and prevalence of emerging technologies are interwoven into the fabric of daily life, shaping decision-making processes and deeply affecting the collective imagination: ‘Never has humanity had such power over itself.’ “[Most] people are watching and waiting, observing from afar and merely hoping for the best. For this very reason, crucial questions impose themselves on our conscience and can no longer be avoided: Where are we going? Toward what goal do we wish to orient ourselves? What direction should we choose as a people and as a human community?” What Is a Papal Encyclical? Popes have written more than 300 encyclicals—or “circulating letters”—since the mid-18th century. They were initially used to clearly communicate doctrine and guidance to priests throughout the world who were facing religious, political or social issues, which was especially useful as the world grew more interconnected and the Church grew larger. Beginning with Pope Leo XIII’s Rerum Novarum and continuing today, some papal encyclicals have been referred to as “social encyclicals” because they address a pervasive social issue through the lens of Catholic Social Teaching and are written not only for those within the Church, but laypeople as well. Some examples of those included Pope Saint John Paul’s 1987 Sollicitudo Rei Socialis on international inequality, and Pope Francis’ 2015 Laudato Si’ on environmental care and social justice. “[Pope Leo XIII and his successors] were developing a new way of teaching the world how to order itself according to Catholic principles, now translated into a vocabulary that would be intelligible to the larger world,” said Patrick Brennan, JD, Chair of Catholic Legal Studies at Villanova University Charles Widger School of Law, on LiveNow From Fox. “They try to address important social questions in ways that any person of goodwill can read and understand.” “Encyclicals contribute to our collective wisdom for how to live as community,” wrote Sally Scholz, PhD, professor of Philosophy at Villanova, in her recent contribution to Church Life Journal titled “What to Look For in Pope Leo XIV's First Social Encyclical.” “The principles and various themes they discuss offer guidance for day-to-day interpersonal interactions as well as for how to participate as a Catholic and as a “person of good will” at every level of social existence: in our families, our communities, our institutions, our states and in our ‘one human family.’” Observations From Magnifica Humanitas A New Twist on a Longstanding Issue While the types of technology being discussed in the letter—particularly artificial intelligence—are unique to our modern times, encyclicals addressing how to interact with contemporary technology are far from it. “Discussion of the relationship between humans and technology appears in many of the previous social encyclicals,” wrote Dr. Scholz in Church Life Journal. “It is a social phenomenon with so much promise but inspires so much fear for how it will change work and the workplace, communication, global trade, war and the family.” “Technology is integral to evolution. Understanding technology's relationship to human welfare means grasping its role within the flow of biological and human life,” wrote Sister Ilia Delio, OSF, PhD, the Josephine C. Connelly Endowed Chair in Christian Theology in the 2025 Global Sisters Report. What Pope Leo argues in his lengthy letter, boiled down to a few sentences, is that while technological advancements, and AI in particular, can be beneficial to society, they must never supersede human dignity, moral responsibility and the common good. A society that allows systems to replace human judgment, concentrate power or exploit workers risks dehumanization. For Jaisy Joseph, PhD, assistant professor of Theology and Religious Studies at Villanova University, particularly striking was something not written in the document itself, but rather spoken at the official promulgation of the letter in Rome. There, Pope Leo was joined in powerful reflection by Anthropic co-founder Christopher Olah. Olah analogized the current reality with bringing a fictional character to life, citing that while technical fields build the machinery of AI, “what character we choose, how it interacts with the world, how it ought to interact with the world— these are more clearly questions for the humanities, for religion, for philosophy, for society at large.” On that front, he then enlisted the help of the Church in addressing three pressing concerns related to AI and human flourishing, before ending with a request for the Church to continue to be an unyieldingly moral voice and informed critic. “The dynamic dialogue and discernment between Leo and Olah reflect a significant continuity with the Francis papacy,” Dr. Joseph said, referencing the late pontiff’s encouragement of “theology to adopt a transdisciplinary method that recognized how this discipline is part of a web of relationships among disciplines.” Technology Through the Lens of Augustinian Theology Throughout Magnifica Humanitas, Pope Leo’s ubiquitous thoughts and guidance on safeguarding humanity—particularly in the context of modern technology—are infused with references to the teachings of St. Augustine. “[Augustine’s teachings say] we need standards to guide our judgements and actions,” said Terence Sweeney, PhD, assistant teaching professor of Humanities at Villanova. “Pope Leo XIV, ‘a son of St. Augustine,’ offers us standards for how we judge our world in the age of AI. “One surprising standard in a document on Big Tech is that ‘a litmus test for social justice today is the treatment of migrants, refugees and those forced to move.’ Why this litmus test? Leo is shaped by Augustine’s rejection of communities of perfection where only the pure, powerful and perfect are welcome.” “Pope Leo beautifully aligns himself with traditional Catholic Social Teaching while grounding his vision in the theology of St. Augustine,” Dr. Joseph added. “The result is a groundbreaking defense of the human person in our new age of artificial intelligence.” Pope Leo, through a scriptural metaphor of the Tower of Babel, “resurrects Augustine’s famous warning that human history is a constant struggle between two loves fighting for our hearts,” Dr. Joseph said. He references how the builders of the tower tried to create “a single language, a single technology, a single direction” without reference to God. “The concluding paragraphs of chapter three highlight Pope Leo XIV’s distinctively Augustinian approach to evaluating the place of technology and scientific progress in the world,” said Emma Kennedy, PhD, assistant professor of Christian Ethics at Villanova University. “What we love, ‘both as individuals and as a society,’ will guide us to participate in ‘the rebuilding of Jerusalem’ or ‘the construction of Babel’––a contrast that hearkens back to Augustine’s ‘two cities.’” “Pope Leo [also] draws on an Augustinian spirituality that highlights fundamental desiring in the shared search for truth,” added Tim Hanchin, PhD, associate professor of Practical Theology at Villanova. “Our desire for truth, or wonder, reflects humanity’s transcendent origin and end. That we are created in the image and likeness of the Triune God (Genesis 1:26-27) distinguishes human knowing from mere data processing.” A Discussion on Slavery, Past and Present Intermixed with Pope Leo’s chapter four thoughts on modern slavery—such as various forms of human trafficking that he says are “directly linked to the digital economy”—he made an historic recognition and apology for the Church’s role in the transatlantic slave trade centuries ago. Tia Noelle Pratt, PhD, special assistant to the Vice President of Mission and Ministry at Villanova University, assistant professor of Sociology, and editor of the Journal of Catholic Social Thought, said that what makes this acknowledgement so important is how it differs from the way previous popes have addressed the issue, which have condemned slavery but remained at the individual level. “They spoke of their papal predecessors and those popes’ actions, but stopped short of invoking the institution itself and the institution's role in the promulgation of slavery,” Dr. Pratt said. Tying it back to current affronts on human dignity fueled by the digital age, Pope Leo penned his own papal version of the famous saying that “Those who cannot remember the past are condemned to repeat it.” “If we want to avoid the need to ask for pardon again in the future for having failed to respect the treasure of human dignity that is required by our faith, it falls to us today to denounce, clearly and firmly, trafficking in its many forms,” he wrote. “Pope Leo is telling us today that we cannot have detachment between the past and the present,” Dr. Pratt said. “We must see how these things are connected.” Inspired by Rerum Novarum, but Far From a Repeat Pope Leo XIV signed Magnifica Humanitas on May 15—the 135th anniversary of the release of Pope Leo XIII’s Rerum Novarum. That was the most famous social encyclical issued by the long-reigning pontiff and is considered to be a foundational text of modern Catholic Social Thought. It addressed numerous issues facing the working class during the time of the Industrial Revolution. On May 10, 2025—just two days after his election—Pope Leo referenced his namesake’s 1891 encyclical in an address to the College of Cardinals, foreshadowing the attention he intended to pay to the modern version of the same issue. “Pope Leo XIII in his historic encyclical Rerum Novarum addressed the social question in the context of the first great industrial revolution,” Pope Leo said in that address. “In our own day, the Church offers to everyone the treasury of her social teaching in response to another industrial revolution and to developments in the field of artificial intelligence that pose new challenges for the defense of human dignity, justice and labor.” Yet, while he was explicitly inspired by the 19th-century pontiff and his text, Pope Leo makes it clear early in Magnifica Humanitas that “While Leo XIII spoke in his time of ‘new things’ (rerum novarum), today we cannot limit ourselves simply to repeating his insightful teachings. “Instead, we must ask God for the wisdom to interpret the great trends of our time, particularly technological advances.”

Entering Second Year of Papacy, Pope Leo XIV Faces Both Historic and Novel Challenges featured image

5 min

Entering Second Year of Papacy, Pope Leo XIV Faces Both Historic and Novel Challenges

In his first appearance on the balcony of St. Peter’s Basilica, Pope Leo XIV shared with the world a message of hope, communion and reconciliation, emphasizing the need to “build bridges with dialogue and encounter so we can all be one people always in peace.” Throughout the last 12 months, the Pontiff has placed these values at the forefront of his work and ministry, pairing active collaboration with prayerful contemplation in his leadership of the world’s 1.4 billion Catholics. In the coming years, that emphasis is likely to continue, as the Pope addresses longstanding rifts and evolving challenges within the Church and beyond. Asked to consider the most striking aspects of his early papacy, and to reflect on the most pressing issues he currently faces, Villanova faculty members studying the pontificate had a wide variety of responses. Jaisy A. Joseph, PhD Assistant Professor of Theology and Religious Studies For Dr. Joseph, Pope Leo’s first year has been defined by a spiritual vision centered on unity, listening and shared responsibility. “From the beginning of his papacy, Leo emphasized that we are a synodal Church working towards peace and moving forward together. Leo’s Augustinian formation will absolutely leave its imprint on what Pope Francis started. While the two have distinct personalities and styles, there is a fundamental continuity with Francis that Leo has signaled. Leo stresses that at the core of the Church is a deeper desire for a spirituality of ‘we’—a Church rooted in deep listening and bold speaking. This is where the Augustinian charism makes itself known. “This unity does not erase differences. Instead, it asks, ‘How do we create friendships that are strong enough to bear the tensions of our differences?’ In a world shaped by ‘us versus them,’ Leo insists on recognizing Christ in the completely different ‘other.’ “Finally, his leadership style is marked by discernment. Listening is so critical to him, and any caution he displays is not out of fear but wanting to listen before speaking. In a noisy world, he insists that we just need silence—trusting that through shared listening, the Church can move forward together.” Luca Cottini, PhD Professor of Italian Studies For Dr. Cottini, Pope Leo’s first year has been marked by a clear effort to position the Church in active dialogue with the modern world—especially in response to emerging global challenges, migration and an increasingly interconnected faith community. He draws parallels to the priorities of Leo XIV’s namesake, Pope Leo XIII. “Catholic social doctrine is a doctrine that the Church established to address subjects that are not directly written about in the Gospel. This doctrine was important for Pope Leo XIII and is increasingly important for Leo XIV as well. ‘Leo’ is a name that relates back to Catholic social doctrine and the need to read the changing signs of the times. By choosing the name ‘Leo,’ the Pope signaled his desire to respond to contemporary issues. “Leo XIV has also harkened back to Leo XIII in his first year by viewing migration and immigration not as a plight, but rather as an opportunity to enter into contact with new worlds. This approach connects to Leo XIV’s own background and perspective, which includes both proximity to and distance from the United States, giving him both an outsider and insider perspective as well as a critical thinking lens on these issues. “Lastly, Leo XIV has used his first year to elevate this idea of a universal Church that is much needed, shaped by his global exposure and an ability to see the world through the lens of others. He sees that we can dialogue with the world, approaching modernity not as an enemy but as something to engage with.” Patrick McKinley Brennan, JD John F. Scarpa Chair in Catholic Legal Studies According to Professor Brennan, “One of the issues that is on the Pope’s radar and has been from before the conclave is the question of the traditional Latin Mass,” a cause championed by various cardinals, bishops, priests and lay faithful around the globe. As he shares, it is a matter of great interest to a small but growing number of Catholics who recall Pope Benedict XVI’s statement that the traditional Mass—the Mass as it was celebrated by most Catholics since 1570—was “never juridically abrogated” following the Second Vatican Council. “Pope John Paul II in the 1980s, and then Pope Benedict XVI in 2007, liberalized access around the world to the traditional Mass. But Pope Francis revoked most of those permissions, citing ‘facts’ that have subsequently been called into question by investigative journalists and others. Pope Francis issued a document called Traditionis custodes, which [went against] the permissions that Benedict XVI gave in a document called Summorum pontificum in July 2007. “Now, the leadership of the Society of St. Pius X [an anti-modernist priestly fraternity] have announced that they’re going to ordain new bishops, the exact thing that got some of their predecessors excommunicated in 1988, so that the traditional Mass can continue to be celebrated and other sacraments can continue to be provided to Catholics according to the traditional rites. Reading between the lines, I think the Society of St. Pius X is trying to force Pope Leo’s hand on the Latin Mass. He’s been biding his time, working out how to respond to this hard question, and I think they’ve just decided that it’s an all-or-nothing situation. “It’s an example of how Pope Leo inherited some big problems, and I think most of the cardinals who elected him thought that they had chosen someone who, because he can listen and is committed to unity, will try his very best to find a solution that remains faithful to Catholic doctrine while bringing in as many voices as possible. Ironically, Pope Francis reduced legitimate diversity in Catholic liturgy, and while Pope Leo has a chance to restore that diversity, he has to do so in a way that addresses the irregular situation of the Society of St. Pius X.” Ilia Delio, OSF, PhD Josephine C. Connelly Endowed Chair in Christian Theology Looking ahead, Sister Delio says one of the most significant social developments Pope Leo must face is the rise of advanced technologies—in particular, increasingly sophisticated artificial intelligence models. “Our theological anthropology needs a bit of updating, as it does not currently meet the needs of our very complex world today. There are a lot of discussions on artificial intelligence and advanced technology, but the problem is that these technologies are already here and rapidly advancing. “So, we have to face this reality, not by asking ‘What is happening to us?’ but ‘What are we becoming with our technologies?’ and ‘How best can we remain human in an AI world?’ I think Pope Leo is asking similar questions, considering what makes the human person the image of God, what makes us distinct and whether there are human values that cannot be downloaded or reproduced in a digital medium. “At the same time, we must ask: Can technology deepen the human spirit by enabling a new level of collective life? Can AI technology empower the Body of Christ?” To speak with any of these faculty experts, please contact mediaexperts@villanova.edu.

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