Three months after Macy’s said it would likely shutter dozens of stores in the first months of 2016, the retailer has solidified its plan.
The retailer announced on Wednesday that it will eliminate about 4,800 jobs and close 40 stores in an effort to cut costs after a dismal holiday season.
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations,” Terry J. Lundgren, chairman and chief executive officer of Macy, said in a statement.
Macy’s says the cuts are estimated to save approximately $400 million and enable the company to “still investing in growth strategies, particularly in omnichannel capabilities.”
Thirty-six of the 40 affected stores, representing about 5% of Macy’s-branded U.S. stores, will shutter in the spring of 2016. Four stores — in Owings Mill, MD; Bedford, NH; West Orange, NJ; and downtown Pittsburgh — are already in the process of being shuttered. Most stores will begin offering clearance sales next week, continuing for up to 12 weeks.
“In today’s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places,” Lundgren said. “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 estimated 4,800 employee – including 165 executives – may be offered positions in nearby stores, if possible, the company said.
Macy’s is no stranger to closing stores. In early 2015, the company announced it had closed 14 stores and opened two in a restructuring effort.
In addition to the four in-progress closings mentioned above, here are the 36 stores slated to close this spring:
• Irvine Spectrum, Irvine, CA
• Country Club Plaza, Sacramento, CA
• Westfield Century City, Los Angeles, CA
• Enfield Square main store, Enfield, CT
• Enfield Square furniture/home/men’s store, Enfield, CT
• North DeKalb Mall, Decatur, GA
• Kailua, HI
• Palouse Mall, Moscow, ID
• Northwoods Mall, Peoria, IL
• Cortana Mall, Baton Rouge, LA
• Valley Mall, Hagerstown, MD
• Berkshire Mall, Lanesborough, MA
• Eastfield Mall, Springfield, MA
• The Shoppes at Stadium, Columbia, MO
• Middlesex Mall, South Plainfield, NJ
• McKinley Mall main store, Buffalo, NY
• McKinley Mall home store, Buffalo, NY
• Arnot Mall, Horsehead, NY
• Hudson Valley Mall, Kingston, NY
• Eastern Hills Mall, Williamsville, NY
• Cary Towne Center, Cary, NC
• Chapel Hill Mall, Akron, OH
• Midway Mall, Elyria, OH
• Quail Springs Mall, Oklahoma City, OK
• Pony Village Mall, North Bend, OR
• Roseburg Valley Mall, Roseburg, OR
• Suburban Square, Ardmore, PA
• Century III Mall, West Mifflin, PA
• Ridgmar Mall, Ft. Worth, TX
• Chesapeake Square, Chesapeake, VA
• Virginia Center Commons, Glen Allen, VA
• Peninsula Town Center, Hampton, VA
• Military Circle Mall, Norfolk, VA
• Regency Square main store, Richmond, VA
• Regency Square furniture/home/men’s store, Richmond, VA
• Downtown Spokane, Spokane, WA
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