The company announced store closures and thousands of job cuts today after an unsuccessful holiday season.
Timothy A. Clary / AFP / Getty Images
Macy's will cut thousands of jobs and close 36 stores after another disappointing year.
The company already closed four stores last year and will shutter another 36 this spring, affecting more than 2,700 associates, it said on Wednesday. A spokesperson told BuzzFeed News the company is not yet sure how many of those workers it can place in other stores.
Clearance sales at most of the stores being closed — which are listed below — will start Jan. 11 and run for eight to 12 weeks. Macy's, which also owns Bloomingdale's, said another 3,000 associates will be affected by store staffing reductions, though it plans to assign half of those workers to other positions.
The job cuts are widespread: Macy's also said it's offering a "voluntary separation opportunity," or severance deal, for 165 senior executives. It also plans to cut 600 back-office jobs, though says it will reassign 150 of those people, and will shut down a St. Louis call center with 750 employees.
In total, more than 6,000 people will be affected. The company employs about 163,000 people, the spokesperson said in an email.
"In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations," Macy's CEO Terry Lundgren said in a statement. "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."
The struggles at Macy's validates the grim expectations many had for the holiday season, with an unusually warm winter and continued declines in foot traffic at malls. The company said its comparable sales fell about 5% in November and December and will likely post a similar decline this month, dragging down sales for the year. (Retailers' annual earnings reports include January to cover post-holiday sales.)
About 80% of the company's sales decline can be blamed on "shortfalls in cold-weather goods" like coats, boots and gloves, Lundgren said.
The company said in September it would close up to 40 stores this year, but didn't specify which ones. It only closed 52 stores between 2010 and the date of that announcement.
Even Macy's bright spots paint a gloomy picture for the future of department-store sales: the web and its new T.J. Maxx-Nordstrom Rack competitor, Macy's Backstage. The company highlighted both today, saying its ecommerce business is seeing double-digit increases and that it plans to open 50 more Macy's Backstage locations in the next two years.
The company said final clearance sales will start Jan. 11 and run for eight to 12 weeks. Sales have already started at Westfield Century City, North DeKalb Mall and Roseburg Valley Mall, it said.
- 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:
* 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).
LINK: Macy’s Will Close Up To 40 Stores In Early 2016
via IFTTT
No comments:
Post a Comment