CINCINNATI, Ohio (WRIC) — Macy’s, Inc. announce Wednesday that 40 Macy’s stores (out of a current total of about 770 Macy’s stores) will be closing. Of the 40, 36 will be closed in early spring 2016, consistent with its announcement in September 2015. The other four stores were closed in the final three-quarters of 2015, as previously announced.
“Our company is committed to operating great Macy’s and Bloomingdale’s stores in the best locations – both to serve shoppers who walk through the door and to fulfill orders that are shipped directly to customers around the country,” Lundgren said. “In today’s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places. So we will continue to add stores selectively while also being disciplined about closing stores that are unproductive or no longer robust shopping destinations because of changes in the local retail shopping landscape.”
The 36 Macy’s stores being closed in early 2016, along with four others closed in the final three-quarters of 2015, account for approximately $375 million in annual sales, some of which are expected to be retained in nearby stores and with online/mobile sales.
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 closings will be offered severance benefits.
Virginia stores that will be closed are:
- 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).
Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc, offered the following statement in a press release:
“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. 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
“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.”