Macy’s to close 11 stores amid disappointing holiday sales[SIZE=-1]
On Thursday, the Cincinnati-based chain said it would close of 11 stores that failed to meet expectations. Company CEO Terry J. Lundgren described the move, in a statement, as ?part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores."* The closings involve many venerable stores, and will take place in cities including Los Angeles, Colorado Springs and Westminster, Colo., West Palm Beach, Fla., Indianapolis, Nashville, and St. Louis. The oldest victim, a Macy?s in Natrona Heights, Pa., dates back to 1956.
Final clearance sales are expected to begin within the few days at all but the Macy?s in Hawaii, which is part of a hotel complex.
Though the closings may indeed have been part of the company?s long-term business strategy, they were announced on the same day that Macy?s revealed it?s latest sales figures, which weren?t pretty. The chain reported total sales of $4.4 billion for the five weeks ended Jan. 3, a decrease of 4.7 percent vs. the same period in 2007. Same-store sales were down 4 percent in December compared to a year ago, and down 7.5 percent for the combined months of November and December. For the year-to-date, chainwide sales plummeted 5.4. On a bright note, Macy?s Internet business was booming, up around 30 percent for the year and 26 percent for November and December, but it wasn?t enough to make much of a dent in the company?s overall picture.
"The decision to close stores is difficult, and often occurs when the market changes, new competing shopping centers are opened nearby to existing older ones, or when customers change shopping habits. In the store closing process, we are committed to treating affected associates with respect and openness," Lundgren said.
The company says employees who lose their jobs may be considered for open positions at other Macy's locations. Regular full- and part-timers who are laid off will be provided severance benefits and outplacement assistance, according to the company.
Last year, Macy's opened four new stores and one furniture gallery, and reopened a New Orleans store damaged by Hurricane Katrina. In 2009, Macy's, Inc. expects to open three new Macy's and one replacement store.
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