Citing Holiday Doldrums, Macy’s Closes 40 Stores

The exterior of a Macy's department store in d...

As the Cincinnati-based retailer suggested it would back in September, Macy’s has announced the closure of 40 stores across the US.  Citing a series of “cost-efficiency and process improvement measures” to be implemented 1Q 2016, the retailer aims by 2018 to ultimately save $500 million in selling, general and administrative expenses (SG&A) with the closures.  The move will lay off over 2,700 employees by my count and affects 4.4% of the company’s portfolio of stores.

“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations. Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity. We will continue to invest in strategic initiatives that anticipate emerging customer needs and create shareholder value,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc. “The cost efficiencies represent more than two-thirds of our goal of annual SG&A expense reduction of $500 million, net of growth initiatives, from previously planned levels by 2018. In some cases, there will be short-term pain as we tighten our belt and realign our resources. But our eye is on a long-term vision of Macy’s, Inc. as a dynamic retailer that serves existing customers and acquires new ones through innovative approaches to the marketplace.”

Which Stores Are Closing?

Final clearance sales at the following Macy’s stores closing in early 2016 will begin onMonday, Jan. 11 and run for between eight to 12 weeks (with the exception of Westfield Century City, North DeKalb Mall and Roseburg Valley Mall, where final clearance sales are already in progress):

  • Irvine Spectrum, Irvine, CA (140,000 square feet; opened in 2002; 112 associates);
  • Country Club Plaza, Sacramento, CA (165,000 square feet; opened in 1961; 111 associates);
  • Westfield Century City, Los Angeles, CA (136,000 square feet; opened in 1976; 108 associates). Note that this store will be closed in January 2016 and replaced with a new, larger store to open in this same shopping center in spring 2017;
  • Enfield Square main store, Enfield, CT (166,000 square feet; opened in 1971; 84 associates);
  • Enfield Square furniture/home/men’s store, Enfield, CT (76,000 square feet; opened in 1971; 20 associates);
  • North DeKalb Mall, Decatur, GA (190,000 square feet; opened in 1965; 89 associates);
  • Kailua, HI (59,000 square feet; opened in 1946; 57 associates);
  • Palouse Mall, Moscow, ID (41,000 square feet; opened in 1979; 47 associates);
  • Northwoods Mall, Peoria, IL (165,000 square feet; opened in 1985; 62 associates);
  • Cortana Mall, Baton Rouge, LA (243,000 square feet; opened in 1976; 108 associates);
  • Valley Mall, Hagerstown, MD (120,000 square feet; opened in 1999; 59 associates);
  • Berkshire Mall, Lanesborough, MA (111,000 square feet; opened in 1994; 58 associates);
  • Eastfield Mall, Springfield, MA (127,000 square feet; opened in 1994; 71 associates);
  • The Shoppes at Stadium, Columbia, MO (140,000 square feet; opened in 2003; 81 associates);
  • Middlesex Mall, South Plainfield, NJ (81,000 square feet; opened in 1976; 69 associates);
  • McKinley Mall main store, Buffalo, NY (88,000 square feet; opened in 1989; 65 associates);
  • McKinley Mall home store, Buffalo, NY (31,000 Square feet; opened in 1989; 10 associates);
  • Arnot Mall, Horsehead, NY (120,000 square feet; opened in 1995; 79 associates);
  • Hudson Valley Mall, Kingston, NY (121,000 square feet; opened in 1995; 72 associates);
  • Eastern Hills Mall, Williamsville, NY (127,000 square feet; opened in 1971; 80 associates);
  • Cary Towne Center, Cary, NC (107,000 square feet; opened in 1991; 63 associates);
  • Chapel Hill Mall, Akron, OH (169,000 square feet; opened in 1967; 91 associates);
  • Midway Mall, Elyria, OH (105,000 square feet; opened in 1990; 64 associates);
  • Quail Springs Mall, Oklahoma City, OK (146,000 square feet; opened in 1986; 87 associates);
  • Pony Village Mall, North Bend, OR (41,000 square feet; opened in 1980; 54 associates);
  • Roseburg Valley Mall, Roseburg, OR (40,000 square feet; opened in 1980; 59 associates);
  • Suburban Square, Ardmore, PA (102,000 square feet; opened in 1930; 74 associates);
  • Century III Mall, West Mifflin, PA (173,000 square feet; opened in 1979; 101 associates);
  • Ridgmar Mall, Ft. Worth, TX (181,000 square feet; opened in 1998; 92 associates);
  • Chesapeake Square, Chesapeake, VA (95,000 square feet; opened in 1999; 69 associates);
  • Virginia Center Commons, Glen Allen, VA (110,000 square feet; opened in 1993; 81 associates);
  • Peninsula Town Center, Hampton, VA (173,000 square feet; opened in 1977; 109 associates);
  • Military Circle Mall, Norfolk, VA (153,000 square feet; opened in 1976; 95 associates);
  • Regency Square main store, Richmond, VA (100,000 square feet; opened in 1990; 100 associates);
  • Regency Square furniture/home/men’s store, Richmond, VA (124,000 square feet; opened in 1990; 35 associates);
  • Downtown Spokane, Spokane, WA (374,000 square feet; opened in 1947; 94 associates).

Macy’s stores closed in the final three quarters of 2015 (previously announced):

  • Owings Mills Mall, Owings Mills, MD (164,000 square feet; opened in 1986; 90 associates);
  • Bedford, NH (180,000 square feet; opened in 1966; 105 associates);
  • Essex Green Shopping Center, West Orange, NJ (93,000 square feet; opened in 1975; 101 associates). Note that this location was converted to a Macy’s Backstage store.
  • Downtown Pittsburgh, PA (1,158,000 square feet; opened in 1946; 170 associates).

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