Macy’s, Inc. detailed a series of normal-course adjustments to its portfolio of Macy’s and Bloomingdale’s stores across the country.
“We remain committed to operating a successful and growing stores business as part of our company’s Omni channel strategy for serving customers wherever, whenever and however they prefer to shop,” said Karen M. Hoguet, chief financial officer of Macy’s, Inc. “This leads us to open new stores where we see the opportunity to fill gaps in important markets, as well as to make the tough decision to selectively close underperforming stores that no longer meet our performance requirements or where leases are not being renewed.”
Once all of these changes have been implemented, Macy’s will operate 798 stores in 45 states, the District of Columbia, Puerto Rico and Guam. Bloomingdale’s will have a total of 37 full-line and home stores, as well as 13 Bloomingdale’s Outlet stores. Bloomingdale’s also operates in Dubai under a license agreement with Al Tayer Group LLC.
The company will close the following six stores in early spring 2013. Final clearance sales will begin on Monday, Jan. 7, at the five Macy’s locations (and on Sunday, Jan. 6, at Bloomingdale’s Fashion Show), and run for between seven and 11 weeks.
Fashion Show Home Store, Las Vegas, NV (99,000 square feet; opened in 2002; 35 associates).
-Paseo Colorado, Pasadena, CA (158,000 square feet; opened in 1980; 116 associates);
-Belmont, MA (75,000 square feet; opened in 1978; 101 associates);
-Downtown Honolulu, HI (80,000 square feet; opened in 1850; 91 associates);
-Downtown St. Paul, MN (362,000 square feet; opened in 1963; 153 associates);
-Downtown Houston, TX (791,000 square feet; opened in 1947; 138 associates).
The company is committed to treating associates affected by store closings with respect and openness. Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits.
In conjunction with these store closings, an estimated $2 million to $4 million of costs will be booked in the fourth quarter of 2012. These costs were not previously included in earnings guidance provided by the company.
Planned Store Openings
As previously announced, nine new and replacement Macy’s and Bloomingdale’s stores are currently planned and/or under construction. One new Bloomingdale's Outlet store is being announced.