With the Empire State building in the background, the Macy’s logo was illuminated on the front of the department store in NY in November 2013.
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Macy’s Inc M.N said it would close about 100 stores and boost investment in its online operations as it seeks to turn around its business after six quarters of falling sales. However, Macy’s board has not yet finalized which stores will eventually shut down, a decision that will see most stores make it until the end of the fiscal year.
Macy’s said an announcement on which stores would close will be made later in the year. A closure of that store would be a devastating blow to the mall, which already lost one of its four anchor stores when Elder Beerman closed earlier this year.
At its peak in January 2007, the chain had 868 stores, including locations under the Bloomingdale’s brand, the AP reported. Macy’s operates nine stores in metro Phoenix and two in Tucson, according to the company’s website.
The company did not identify the store locations, but said the 100 mostly underperforming stores would represent annual net sales volume of about $1 billion. Macy’s had said in May that it expects revenue at stores, including business from licensed departments, open at least a year to be down 3 percent to 4 percent.
The company said real estate options being explored include selling off assets or parts of its stores and exploring joint ventures or strategic alliances with real estate development firms.
J.C. Penney narrowed its loss and posted a 2.2 percent increase in same-store, but the recovering department store chain’s revenue fell slightly short of expectations.
“Macy’s is committed to treating associates affected by store closings with respect and openness”, it said.
The closures are Macy’s latest effort to adapt to shifting consumer preferences for online shopping, CNNMoney reported.
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The company said it earned $11 million, or 3 cents per share, in the quarter ended July 30. Excluding the impact of store closings and other items, Macy’s per-share earnings were 54 cents, down from 94 cents in the same quarter a year earlier but still much better than analysts had expected. The company, with executive offices in Cincinnati and NY, logged $27 billion in revenue past year. Wall Street applauded the dramatic store closures, sending the stock surging 16%, on track for its best day since 2008.
