CINCINNATI - Macy’s Inc. announced 36 store closures and $400 million in new cost-cutting measures Wednesday, but the reductions will accrue to the benefit of Mason, where Macy’s will add hundreds of jobs to replace a call center that will be closed in St. Louis, Mo.
Two Ohio stores will be closed, but none in Cincinnati.
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations,” said Macy’s CEO Terry Lundgren in a press release. “We believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity. We will continue to invest in strategic initiatives that anticipate emerging customer needs and create shareholder value.”
Macy’s has been struggling for months to reverse slumping sales, but it revealed for the first time Wednesday that the slowdown extended into the 2015 holiday shopping season.
Same-store sales declined 4.7 percent in November and December, resulting in a new round of budget cuts that includes the elimination of 600 back-office jobs and a reduction of 3,000 store associate positions nationwide.
Macy’s expects 50 percent of the affected store associates and about 150 back-office employees will transfer to other jobs within the company. Cincinnati will suffer minimal impact from the cuts, said Macy's spokesman Jim Sluzewski. More than 200 new jobs will be added in Mason, he added.
“In some cases, there will be short-term pain as we tighten our belt and realign our resources,” Lungren said. “But our eye is on a long-term vision of Macy’s, Inc. as a dynamic retailer that serves existing customers and acquires new ones through innovative approaches to the marketplace.”
Macy's announced 36 new store closures Wednesday. Four others were closed in 2015. Together, the 40 stores accounted for about $375 million in annual sales, some of which are expected to be retained in nearby stores and with online/mobile sales.
Here are the 36 stores that Macy’s plans to close in early 2016:
- Irvine Spectrum, Irvine, CA (140,000 square feet; opened in 2002; 112 associates);
- Country Club Plaza, Sacramento, CA (165,000 square feet; opened in 1961; 111 associates);
- Westfield Century City, Los Angeles, CA (136,000 square feet; opened in 1976; 108 associates). Note that this store will be closed in January 2016 and replaced with a new, larger store to open in this same shopping center in spring 2017;
- Enfield Square main store, Enfield, CT (166,000 square feet; opened in 1971; 84 associates);
- Enfield Square furniture/home/men’s store, Enfield, CT (76,000 square feet; opened in 1971; 20 associates);
- North DeKalb Mall, Decatur, GA (190,000 square feet; opened in 1965; 89 associates);
- Kailua, HI (59,000 square feet; opened in 1946; 57 associates);
- Palouse Mall, Moscow, ID (41,000 square feet; opened in 1979; 47 associates);
- Northwoods Mall, Peoria, IL (165,000 square feet; opened in 1985; 62 associates);
- Cortana Mall, Baton Rouge, LA (243,000 square feet; opened in 1976; 108 associates);
- Valley Mall, Hagerstown, MD (120,000 square feet; opened in 1999; 59 associates);
- Berkshire Mall, Lanesborough, MA (111,000 square feet; opened in 1994; 58 associates);
- Eastfield Mall, Springfield, MA (127,000 square feet; opened in 1994; 71 associates);
- The Shoppes at Stadium, Columbia, MO (140,000 square feet; opened in 2003; 81 associates);
- Middlesex Mall, South Plainfield, NJ (81,000 square feet; opened in 1976; 69 associates);
- McKinley Mall main store, Buffalo, NY (88,000 square feet; opened in 1989; 65 associates);
- McKinley Mall home store, Buffalo, NY (31,000 Square feet; opened in 1989; 10 associates);
- Arnot Mall, Horsehead, NY (120,000 square feet; opened in 1995; 79 associates);
- Hudson Valley Mall, Kingston, NY (121,000 square feet; opened in 1995; 72 associates);
- Eastern Hills Mall, Williamsville, NY (127,000 square feet; opened in 1971; 80 associates);
- Cary Towne Center, Cary, NC (107,000 square feet; opened in 1991; 63 associates);
- Chapel Hill Mall, Akron, OH (169,000 square feet; opened in 1967; 91 associates);
- Midway Mall, Elyria, OH (105,000 square feet; opened in 1990; 64 associates);
- Quail Springs Mall, Oklahoma City, OK (146,000 square feet; opened in 1986; 87 associates);
- Pony Village Mall, North Bend, OR (41,000 square feet; opened in 1980; 54 associates);
- Roseburg Valley Mall, Roseburg, OR (40,000 square feet; opened in 1980; 59 associates);
- Suburban Square, Ardmore, PA (102,000 square feet; opened in 1930; 74 associates);
- Century III Mall, West Mifflin, PA (173,000 square feet; opened in 1979; 101 associates);
- Ridgmar Mall, Ft. Worth, TX (181,000 square feet; opened in 1998; 92 associates);
- Chesapeake Square, Chesapeake, VA (95,000 square feet; opened in 1999; 69 associates);
- Virginia Center Commons, Glen Allen, VA (110,000 square feet; opened in 1993; 81 associates);
- Peninsula Town Center, Hampton, VA (173,000 square feet; opened in 1977; 109 associates);
- Military Circle Mall, Norfolk, VA (153,000 square feet; opened in 1976; 95 associates);
- Regency Square main store, Richmond, VA (100,000 square feet; opened in 1990; 100 associates);
- Regency Square furniture/home/men’s store, Richmond, VA (124,000 square feet; opened in 1990; 35 associates);
- Downtown Spokane, Spokane, WA (374,000 square feet; opened in 1947; 94 associates).
