Macy’s to close stores, cut jobs amid weak sales

Macy's is moving forward with 68 store closures, which are part of the 100 closings it announced in August

File- This Sept. 17, 2016, file photo shows a Macy's sign being illuminated on a store marquis, in New York. Macy's says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.
(AP Photo/Mark Lennihan)
File- This Sept. 17, 2016, file photo shows a Macy's sign being illuminated on a store marquis, in New York. Macy's says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast. (AP Photo/Mark Lennihan)

(AP) – Macy’s says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.

The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared to the same period last year. Macy’s Inc. pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.

As if to underscore that point, Kohl’s Corp. also reported disappointing holiday shopping numbers Wednesday.

Macy’s said the 68 store closures, which span the nation, are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017.

Macy’s is selling or has sold three other locations, but is leasing the properties back and will keep operating those stores.

Some employees may be offered positions at nearby stores, but Macy’s estimates that 3,900 employees will be affected by the closures.

Macy’s also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.

Overall, Macy’s said, the job reductions represent about 7 percent of its workforce.

The company, which owns the Macy’s and Bloomingdale’s brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted. It said it is closing stores that are “unproductive or are no longer robust shopping destinations” as well as selling those with highly valued real estate.

It plans to invest some of its savings in growing its digital business.

Macy’s said it now expects to earn between $2.95 and $3.10 per share on an adjusted basis for its 2016 fiscal year, versus its prior forecast of $3.15 to $3.40 per share. The company is scheduled to report full results in February.

Shares in Macy’s fell more than 10 percent to $32.20 in after-hours trading.

Kohl’s shares fell almost 15 percent to $44.15 after it cut its earnings guidance for fiscal 2016. It now expects $3.60 to $3.65 a share on an adjusted basis, down from its previous forecast of $3.80 to $4.00 per share.


Here’s a look at the recently closed and soon-to-close locations:

Already Completed 2016 Closings

  • Laurel Plaza, North Hollywood, California
  • Ala Moana Jewel Gallery, Honolulu, Hawaii
  • Valley Fair, West Valley City, Utah

Closings slated for early 2017

  • Greenwood, Bowling Green, Kentucky
  • Carolina Place, Pineville, North Carolina
  • Douglaston, Douglaston, New York
  • Downtown Portland, Portland, Oregon
  • Lancaster Mall, Salem, Oregon
  • Oakwood Mall, Eau Claire, Wisconsin

Anticipated Year-End Closings

  • Mission Valley Apparel, San Diego, California
  • Paseo Nuevo, Santa Barbara, California
  • Lakeland Square, Lakeland, Florida
  • Oviedo Marketplace, Oviedo, Florida
  • Sarasota Square, Sarasota, Florida
  • University Square, Tampa, Florida
  • CityPlace, West Palm Beach, Florida
  • Georgia Square, Athens, Georgia
  • Nampa Gateway Center, Nampa, Idaho
  • Alton Square, Alton, Illinois
  • Stratford Square, Bloomingdale, Illinois
  • Eastland, Bloomington, Illinois
  • Jefferson, Louisville, Kentucky
  • Esplanade, Kenner, Louisiana
  • Bangor, Bangor, Maine
  • Westgate, Brockton, Massachusetts
  • Silver City Galleria, Taunton, Massachusetts
  • Lakeview Square Mall, Battle Creek, Michigan
  • Eastland Center, Harper Woods, Michigan
  • Lansing, Lansing, Michigan
  • Westland, Westland, Michigan
  • Minneapolis Downtown, Minneapolis, Minnesota
  • Northgate, Durham, North Carolina
  • Columbia, Grand Forks, North Dakota
  • Moorestown, Moorestown, New Jersey
  • Voorhees Town Center, Voorhees, New Jersey
  • Preakness, Wayne, New Jersey
  • Cottonwood, Albuquerque, New Mexico
  • Las Vegas Boulevard, Las Vegas, Nevada
  • Great Northern, Clay, New York
  • Oakdale Mall, Johnson City, New York
  • The Marketplace, Rochester, New York
  • Eastland, Columbus, Ohio
  • Sandusky, Sandusky, Ohio
  • Fort Steuben, Steubenville, Ohio
  • Promenade, Tulsa, Oklahoma
  • Neshaminy, Bensalem, Pennsylvania
  • Shenango Valley, Hermitage, Pennsylvania
  • Beaver Valley, Monaca, Pennsylvania
  • Lycoming, Muncy, Pennsylvania
  • Plymouth Meeting, Plymouth Meeting, Pennsylvania
  • Washington Crown Center, Washington, Pennsylvania
  • Parkdale, Beaumont, Texas
  • Southwest Center, Dallas, Texas
  • Sunland Park, El Paso, Texas
  • Greenspoint, Houston, Texas
  • West Oaks Mall, Houston, Texas
  • Pasadena Town Square, Pasadena, Texas
  • Collin Creek, Plano, Texas
  • Broadway Square, Tyler, Texas
  • Layton Hills, Layton, Utah
  • Cottonwood, Salt Lake City, Utah
  • Landmark, Alexandria, Virginia
  • River Ridge, Lynchburg, Virginia
  • Everett, Everett, Washington
  • Three Rivers, Kelso, Washington
  • Valley View, La Crosse, Wisconsin

Other 2017 Closings

  • Simi Valley Town Center (men’s/home/kids), Simi Valley, California
  • Mall at Tuttle Crossing (furniture/home/kids/men’s), Dublin, Ohio

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Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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