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Macy's plans to close 35-40 stores in US
09 Sep '15
2 min read
American multinational corporation Macy’s, Inc. has announced plans to close 35 to 40 underperforming Macy’s stores – representing approximately 1 per cent of the total Macy’s, Inc. sales – in early 2016 as the company works to optimize its omnichannel approach to customers across America.
“Physical stores remain absolutely vital to our omnichannel strategy, which provides local touchpoints and tailored merchandise assortments for shoppers in nearly every major market,” said Terry J. Lundgren, Macy’s, Inc. chairman and CEO. “As new shopping centers are opened, however, many customers change their shopping habits and often the sales volume of a store gets divided among the new and nearby, existing centers. Each year, we prune some stores that are our weakest performers so that we can concentrate our resources on the best locations and maintain a strong physical presence. At the same time, we open a small number of new stores to fill gaps in our market coverage or where we have outstanding real estate opportunities."
The locations of the 35 to 40 stores to be closed in early 2016 will be announced at a later date, once the company completes a careful analysis now under way and makes final decisions, Macy’s Inc said in a statement. Together, the stores’ annual sales volume, net of sales expected to be retained in nearby stores and online, is expected to be roughly $300 million.
Macy’s, Inc. operates 770 Macy’s stores in the US. Over the past five years (2010 through 2015 to date), 52 Macy’s stores have been closed and 12 new Macy’s stores have been opened. In addition, six new Macy’s Backstage offprice locations are opening later this year.
The company will communicate its store closing decisions directly with the associates in those locations prior to a public announcement. 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, it said. (SH).
“Physical stores remain absolutely vital to our omnichannel strategy, which provides local touchpoints and tailored merchandise assortments for shoppers in nearly every major market,” said Terry J. Lundgren, Macy’s, Inc. chairman and CEO. “As new shopping centers are opened, however, many customers change their shopping habits and often the sales volume of a store gets divided among the new and nearby, existing centers. Each year, we prune some stores that are our weakest performers so that we can concentrate our resources on the best locations and maintain a strong physical presence. At the same time, we open a small number of new stores to fill gaps in our market coverage or where we have outstanding real estate opportunities."
The locations of the 35 to 40 stores to be closed in early 2016 will be announced at a later date, once the company completes a careful analysis now under way and makes final decisions, Macy’s Inc said in a statement. Together, the stores’ annual sales volume, net of sales expected to be retained in nearby stores and online, is expected to be roughly $300 million.
Macy’s, Inc. operates 770 Macy’s stores in the US. Over the past five years (2010 through 2015 to date), 52 Macy’s stores have been closed and 12 new Macy’s stores have been opened. In addition, six new Macy’s Backstage offprice locations are opening later this year.
The company will communicate its store closing decisions directly with the associates in those locations prior to a public announcement. 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, it said. (SH).
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