Macy’s Closing 11 Stores This Year, Clearance Sales Launch Today
Following a small uptick in sales during this past holiday season, Macy’s announced the closure of 11 stores in 2018—seven of which weren’t previously announced—hoping to save $300 million annually.
Macy’s reported its sales increased 1 percent in November and December 2017 combined compared with the same period in 2016, according to a recent company press release.
Clearance sales for the 11 stores are expected to begin today and will continue for approximately eight to 12 weeks. The closure of those stores this year represents 81 of the 100 locations it put on the chopping block in August 2016. (Macy’s has terminated 124 locations since 2015). Macy’s will reduce its workforce by 5,000 employees as a result of the closures and staff cuts made at remaining locations, as USA Today reported.
“Our primary focus in 2017 has been to continue the strong growth of digital and mobile, stabilize our brick-and-mortar business and set the foundation for future growth,” Macy’s CEO Jeff Gennette said in a statement. “We’ve made good progress on each, including encouraging trend improvements in our brick-and-mortar business.”
Among the 11 Macy’s closing this year, there are four in California including the one in Westside Pavilion mall in Los Angeles (news about its closure was announced last year, as the Los Angeles Business Journal reported in October 2017). There are two closing this year in Florida and one each in Idaho, Indiana, Michigan, Ohio and Vermont.
Macy’s—which has brands such as the flagship Macy’s, its off-price sibling Macy’s Backstage, high-end cousin Bloomingdale’s and beauty and spa retailer Bluemercury—has approximately 140,000 employees and operates more than 860 stores.
Macy’s stock has plummeted to just over $24 per share from approximately $30.46 a year ago. It is expected to report its fourth quarter earnings on Feb. 27.
Besides Macy’s, other retailers have struggled as the retail industry has changed. Sears announced on Jan. 4 that it was planning to close an additional 103 stores this year. JCPenney has plans to eliminate 138 stores. And Bon-Ton announced last year it was cutting 40 locations, as Commercial Observer previously reported.