Macy's to close stores

Jan 8, 2015

Credit Ann Thompson / WVXU

Macy’s plans to lay off thousands of retail workers in response to changing shopping habits in stores and online.  The Cincinnati-based retailer has announced it will close 14 department stores in nine different states, but will open two new locations in the continental US and one in Puerto Rico, and will open two new Bloomingdale’s stores by late 2017.

In a press release late Thursday afternoon, Macy’s says its overall workforce of about 175,000 will stay nearly the same as it picks up staffing in other parts of the company.

Final clearance sales will start Monday, January 12.  The stores should be closed within eight to 12 weeks.  Those stores are in Arizona, California, Florida, Michigan, North Carolina, New Jersey, New York and Tennessee.  Three stores will close in Ohio, in Columbus, Richmond Heights and Springfield.

Terry J. Lundgren, Macy’s chairman and chief executive officer said “Going forward, Macy’s and Bloomingdale’s will be better able to move more quickly and nimbly to select merchandise, assort inventories and serve total customer demand, no matter how, when or where the customer shops.

“Some redundant activity also can be avoided to accelerate speed to market, partner more effectively with vendor resources and ensure the merchandising organizations are more responsive to the marketplace in making and implementing decisions,” Lundgren said.

Macy’s stock slid more than three percent in after-hours trading.

In a separate announcement, Macy's reported a key sales metric rose by 2.7 percent during November and December, in line with its expectations.  Macy's says it is holding to its expectations for fourth-quarter earnings per share, excluding restructuring costs.