Macy’s to close 100 stores
ASSOCIATED PRESS
With the Empire State building in the background, the Macy’s logo was illuminated on the front of the department store in New York in Nov. 2013. Macy’s will be closing about 100 stores in an attempt to trim its footprint as more customers shop online, the department store announced today.
Macy’s will be closing about 100 stores in an attempt to trim its footprint as more customers shop online, the department store announced today.
“This country is overstored given evolving customer shopping habits,” Macy’s Chief Financial Officer Karen Hoguet said during a call with analysts discussing the company’s second-quarter financial results.
Sales at Macy’s stores open at least a year were down 2.6 percent compared with the second quarter of 2015, the sixth consecutive quarter in which comparable sales dropped.
It wasn’t immediately clear how many jobs might be cut as Macy’s has not finalized the list of locations that will close, said spokeswoman Andrea Schwartz.
The 100 stores, most of which will close early in 2017, represent about 15 percent of all of Macy’s full-line stores.
They “often don’t represent the customer shopping experience that reflects our aspirations for Macy’s brand,” Hoguet said.
Shutting down less-profitable stores will let Macy’s focus on improving its top stores and growing online sales, she said.
While most of the closing stores are unproductive or in less-desirable locations, a handful will be shut down because they could be more valuable if redeveloped other than as a retail store, Hoguet said.
Macy’s is examining its portfolio of real estate in big cities. The company said in a news release today it is in negotiations to sell its men’s store on Union Square in San Francisco.
A downtown Chicago store on the city’s shop-heavy State Street “is still in the mix of our flagships to lease or sell portions of the building.” Schwartz said in an email.
Last fall, Macy’s said it was looking at how to redevelop underused space in the State Street store but had no plans to leave.
Macy’s still is considering options for the upper floors of the State Street store, Hoguet said.
17 responses to “Macy’s to close 100 stores”
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On line shopping is taking over traditional methods of buying unless one likes the experience of mingling with other shoppers. On line is usually cheaper with more variety in selection and prevents impulse buying.
I agree but sometimes it is nice seeing what you are buying in person, so you don’t have to return it.
agree
Online sales is just part of the reason for closing the stores. Employers have done the math with states pushing the minimum wage to $15 an hour and decided to close stores versus higher employee costs.
Think it can’t happen? Look at the debacle Seattle is dealing with after their weak of mind elected bureaucrats saw $15 an hour as the way to go.
http://www.investors.com/politics/commentary/the-bitter-lesson-from-seattles-minimum-wage-hike/
Look at more companies cutting back on employees, more automation.
Once again our utterly clueless elected bureaucrats strike out.
I hope they stay open in Hawaii. I still shop at Macy’s during Christmas and for an occasional birthday gift.
I can’t wait for the one to open in Kapolei.
For me, Macy’s is not Liberty House. Their customer service, cleanliness (sized rounders), quality of merchandise etc. is not up to par. Merchandise goes on sale so quickly that most customers avoid buying prices at regular price which might affect their sales. No Hawaiian wear, no merchandise delivery between stores, a lot of areas where Liberty House was strong has been compromised.
No Hawaiian wear? I bought all my Aloha shirts at Macy’s.
No more good old days I guess.
You see those fancy Ahola shirts worn by our Gov, Mayor, city council people? They’re not sold in stores. All custom-made. If you see a nice shirt you will need to buy it NOW. Only a finite number of them are made and then not manufactured again. Becomes collector’s items. I like to buy them and wait a year before wearing them. Then everybody thinks I got a custom-made one. Funny.
Yes, Liberty House stressed good customer service and had one of the most liberal return policies.
So what? What it has to do with Hawaii is whether they will be closing–so where’s the news???
Maybe you should ask Macy’s.
Changing the way world commerce will be conducted in the future, which open doors of opportunities especially for smaller and mid sized business to be able to compete for profitable niche markets.
And, this “new” way of doing business will also evolve to even larger platforms. Being positioned for these platforms are the key, which will likely be the game changers. When will we start seeing this being negotiating points in trade agreements?
I don’t think Macy’s Waikiki will close for another year……they will wait to see how the new International Marketplace pans out.
Merchandising is in a constant state of change based on the convenience of the community? Shopping is an individual’s thing with various psychological nuances. Although food product are being offered on-line, individuals would prefer to see what they will put into their mouths, a very personal thing. So too, with personal under clothing, more so with panties, negligees, chemise and list goes on?
I have never been to Macy’s.