Macy’s Announces Plans for 35 to 40 Store Closings
September 08 2015 - 4:30PM
Business Wire
Macy’s, Inc. (NYSE:M) today announced plans to close 35 to 40
underperforming Macy’s stores – representing approximately 1
percent 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 chief executive officer. “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.
“Macy’s is already one of the largest and fastest-growing
digital platforms in the country. Our fast-growing digital
offering, including robust apps and mobile-enhanced websites,
integrate with our stores to provide an unparalleled omnichannel
shopping experience for customers wherever, whenever and however
they prefer to shop. As a result, we are able to attract new
customers and grow sales profitably,” Lundgren said.
“Macy’s stores today are places to shop, relax and be
entertained – much like they have for generations. Moreover, all
Macy’s stores today can fulfill merchandise orders direct to
consumers’ homes, serve as convenient locations for customer pick
up of merchandise bought online, and are the origination point for
same-day delivery in 17 local markets,” Lundgren added. “While
making the decision to close stores is difficult, we know it is
necessary for us to remain competitive as customer shopping
patterns continue to change.”
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. 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. today operates 770 Macy’s stores. 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 in fall
2015.
The company will communicate its store closing decisions
directly with the associates in those locations prior to a public
announcement. Macy’s 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.
Macy’s, Inc., with corporate offices in Cincinnati and New York,
is one of the nation’s premier retailers, with fiscal 2014 sales of
$28.105 billion. The company operates about 885 stores in 45
states, the District of Columbia, Guam and Puerto Rico under the
names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet and
Bluemercury, as well as the macys.com, bloomingdales.com and
bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al
Tayer Group LLC under a license agreement.
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Macy’s management and are subject to significant risks and
uncertainties. Actual results could differ materially from those
expressed in or implied by the forward-looking statements contained
in this release because of a variety of factors, including
conditions to, or changes in the timing of, proposed transactions,
prevailing interest rates and non-recurring charges, competitive
pressures from specialty stores, general merchandise stores,
off-price and discount stores, manufacturers’ outlets, the
Internet, mail-order catalogs and television shopping and general
consumer spending levels, including the impact of the availability
and level of consumer debt, the effect of weather and other factors
identified in documents filed by the company with the Securities
and Exchange Commission.
(NOTE: Additional information on Macy’s, Inc., including past
news releases, is available at www.macysinc.com/pressroom).
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version on businesswire.com: http://www.businesswire.com/news/home/20150908006660/en/
Macy’s, Inc.MediaJim Sluzewski, 513-579-7764orInvestorMatt
Stautberg, 513-579-7780
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