Macy’s store total come springtime will be 68 fewer as the venerable department store chain announced a new round of store closures.
In addition to closing the stores, the company will also reorganize its field structure that will support its remaining stores, reinforcing what Macy’s officials said is a strategy of fewer stores with better customer experience.
The decision to close stores, which account for approximately $575 million in revenue, comes following a continued period of declining store traffic, said Terry Lundgren, Macy’s chairman and CEO.
“Over the past year, we have been focused and disciplined about making strategic decisions to position us to gain market share and return to growth over time,” he said. “Given the overall trends challenging us and the broader retail industry, and the time needed to execute new strategies.”
Lundgren said Macy’s omnichannel strategies continue to evolve based on the changes in its customers’ shopping behaviors, including a focus on buy online, pickup in store and mobile-enabled shopping.
In conjunction with Wednesday’s announcement, approximately $250 million of charges or 50 cents per share (of which approximately $210 million is expected to be cash) are expected to be recorded in the fourth quarter of 2016. These charges were not previously included in earnings guidance provided by the company and are in addition to the $249 million recorded in the second quarter as an estimate of asset impairment and other charges primarily related to 2016 store closings. Prior to the announcement, Macy’s operated 730 locations.
The company estimates that 3,900 associates will be displaced as a result of these closures.
Of the 68 stores on the chopping block, three closed mid-year, 63 will be closed in early spring 2017 and two will be closed in mid-2017. Three other locations were sold, or are to be sold, and are being leased back. Company officials said they also intend to opportunistically close approximately 30 additional stores over the next few years as leases or operating covenants expire or sale transactions are completed.
Already completed store closings:
- Laurel Plaza, North Hollywood, CA (475,000 square feet; opened in 1995; 105 associates);
- Ala Moana Jewel Gallery, Honolulu, HI (2,000 square feet; opened in 1986; 9 associates);
- Valley Fair, West Valley City, UT (106,000 square feet; opened in 1970; 53 associates);
Already Announced Year-End 2016 Closings
Final clearance sales at the following Macy’s stores closing in early 2017 will begin on Monday, January 9, and run for approximately eight to 12 weeks (with the exception of Lancaster Mall*, where final clearance sales are already in progress):
- Greenwood, Bowling Green, KY (124,000 square feet; opened in 1980; 63 associates);
- Carolina Place, Pineville, NC (151,000 square feet; opened in 1993; 69 associates);
- Douglaston, Douglaston, NY (158,000 square feet; opened in 1981; 144 associates);
- Downtown Portland, Portland, OR (246,000 square feet; opened in 2007; 85 associates);
- *Lancaster Mall, Salem, OR (67,000 square feet; opened in 1980; 53 associates);
- Oakwood Mall, Eau Claire, WI (104,000 square feet; opened in 1991; 55 associates)
Year-End Closings
- Mission Valley Apparel, San Diego, CA (385,000 square feet; opened in 1961; 140 associates);
- Paseo Nuevo, Santa Barbara, CA (141,000 square feet; opened in 1990; 77 associates);
- Lakeland Square, Lakeland, FL (101,000 square feet; opened in 1995; 68 associates);
- Oviedo Marketplace, Oviedo, FL (195,000 square feet; opened in 2000; 83 associates);
- Sarasota Square, Sarasota, FL (143,000 square feet; opened in 1977; 86 associates);
- University Square, Tampa, FL (140,000 square feet; opened in 1974; 73 associates);
- CityPlace, West Palm Beach, FL (108,000 square feet; opened in 2000; 72 associates);
- Georgia Square, Athens, GA (121,000 square feet; opened in 1981; 69 associates);
- Nampa Gateway Center, Nampa, ID (104,000, square feet; opened in 2009; 57 associates);
- Alton Square, Alton, IL (180,000 square feet; opened in 1978; 54 associates);
- Stratford Square, Bloomingdale, IL (149,000 square feet; opened in 1981; 87 associates);
- Eastland, Bloomington, IL (154,000 square feet; opened in 1999; 55 associates);
- Jefferson, Louisville, KY (157,000 square feet; opened in 1979; 52 associates);
- Esplanade, Kenner, LA (188,000 square feet; opened in 2008; 101 associates);
- Bangor, Bangor, ME (143,000 square feet; opened in 1998; 65 associates);
- Westgate, Brockton, MA (144,000 square feet; opened in 2003; 79 associates);
- Silver City Galleria, Taunton, MA (152,000 square feet; opened in 1992; 82 associates);
- Lakeview Square Mall, Battle Creek, MI (102,000 square feet: opened 1983; 51 associates);
- Eastland Center, Harper Woods, MI (433,000 square feet; opened in 1957; 121 associates);
- Lansing, Lansing, MI (103,000 square feet; opened in 1979; 57 associates);
- Westland, Westland, MI (334,000 square feet; opened in 1965; 106 associates);
- Minneapolis Downtown, Minneapolis, MN (1,276,000 square feet; opened in 1902; 280 associates);
- Northgate, Durham, NC (187,000 square feet; opened in 1994; 72 associates);
- Columbia, Grand Forks, ND (99,000 square feet; opened in 1978; 53 associates);
- Moorestown, Moorestown, NJ (200,000 square feet; opened in 1999; 107 associates);
- Voorhees Town Center, Voorhees, NJ (224,000 square feet; opened in 1970; 77 associates);
- Preakness, Wayne, NJ (81,000 square feet; opened in 1963; 72 associates);
- Cottonwood, Albuquerque, NM (173,000 square feet; opened in 1996; 56 associates);
- Las Vegas Boulevard, Las Vegas, NV (178,000 square feet; opened in 1966; 84 associates);
- Great Northern, Clay, NY (88,000 square feet; opened in 1989; 55 associates);
- Oakdale Mall, Johnson City, NY (140,000 square feet; opened in 2000; 58 associates);
- The Marketplace, Rochester, NY (149,000 square feet; opened in 1982; 77 associates);
- Eastland, Columbus, OH (121,000 square feet; opened in 2006; 73 associates);
- Sandusky, Sandusky, OH (133,000 square feet; opened in 1979; 61 associates);
- Fort Steuben, Steubenville, OH (132,000 square feet; opened in 1974; 59 associates);
- Promenade, Tulsa, OK (180,000 square feet; opened in 1996; 58 associates);
- Neshaminy, Bensalem, PA (211,000 square feet; opened in 1968; 89 associates);
- Shenango Valley, Hermitage, PA (106,000 square feet; opened in 1976; 69 associates);
- Beaver Valley, Monaca, PA (203,000 square feet; opened in 1987; 78 associates);
- Lycoming, Muncy, PA (120,000 square feet; opened in 1995; 61 associates);
- Plymouth Meeting, Plymouth Meeting, PA (214,000 square feet; opened in 1966; 74 associates);
- Washington Crown Center, Washington, PA (148,000 square feet; opened in 1999; 67 associates);
- Parkdale, Beaumont, TX (171,000 square feet; opened in 2002; 67 associates);
- Southwest Center, Dallas, TX (148,000 square feet; opened in 1975; 68 associates);
- Sunland Park, El Paso, TX (105,000 square feet; opened in 2004; 71 associates);
- Greenspoint, Houston, TX (314,000 square feet; opened in 1976; 70 associates);
- West Oaks Mall, Houston, TX (244,000 square feet; opened in 1982; 135 associates);
- Pasadena Town Square, Pasadena, TX (209,000 square feet; opened in 1962; 78 associates);
- Collin Creek, Plano, TX (199,000 square feet; opened in 1980; 103 associates);
- Broadway Square, Tyler, TX (100,000 square feet; opened in 1981; 65 associates);
- Layton Hills, Layton, UT (162,000 square feet; opened in 1980; 72 associates);
- Cottonwood, Salt Lake City, UT (200,000 square feet; opened in 1962; 88 associates);
- Landmark, Alexandria, VA (201,000 square feet; opened in 1965; 119 associates);
- River Ridge, Lynchburg, VA (144,000 square feet; opened in 1980; 60 associates);
- Everett, Everett, WA (133,000 square feet; opened in 1977; 109 associates);
- Three Rivers, Kelso, WA (51,000 square feet; opened in 1987; 57 associates);
- Valley View, La Crosse, WI (101,000 square feet; opened in 1980; 57 associates)
Other 2017 Closings
- Simi Valley Town Center (men’s/home/kids), Simi Valley, CA (190,000 square feet; opened in 2006; 105 associates);
- Mall at Tuttle Crossing (furniture/home/kids/men’s), Dublin, OH (227,000 square feet; opened in 2003; 52 associates)
Stores Sold (or to be Sold) and Leased Back
- These stores have been or will be sold, and Macy’s will continue to operate them on leases from the owners:
- Stonestown Galleria, San Francisco, CA (280,000 square feet; opened in 1952; 204 associates);
- Union Square Men’s, San Francisco, CA (248,000 square feet; opened in 1974; 256 associates; as previously announced);
- Tyson’s Galleria, McLean, VA (265,000 square feet; opened in 1988; 122 associates; as previously announced)
