Macy's closing stores

Macy’s closing stores

Macy’s says it will close 35 to 40 stores in early 2016, or as much as 5 percent of its namesake department stores.

“Physical stores remain absolutely vital to our omnichannel strategy, which provides local touchpoints and tailored merchandise assortments for shoppers in nearly every major market,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer. “As new shopping centers are opened, however, many customers change their shopping habits and often the sales volume of a store gets divided among the new and nearby, existing centers. Each year, we prune some stores that are our weakest performers so that we can concentrate our resources on the best locations and maintain a strong physical presence. At the same time, we open a small number of new stores to fill gaps in our market coverage or where we have outstanding real estate opportunities.

“Macy’s is already one of the largest and fastest-growing digital platforms in the country. Our fast-growing digital offering, including robust apps and mobile-enhanced websites, integrate with our stores to provide an unparalleled omnichannel shopping experience for customers wherever, whenever and however they prefer to shop. As a result, we are able to attract new customers and grow sales profitably,” Lundgren said.

“Macy’s stores today are places to shop, relax and be entertained – much like they have for generations. Moreover, all Macy’s stores today can fulfill merchandise orders direct to consumers’ homes, serve as convenient locations for customer pick up of merchandise bought online, and are the origination point for same-day delivery in 17 local markets,” Lundgren added. “While making the decision to close stores is difficult, we know it is necessary for us to remain competitive as customer shopping patterns continue to change.”

Macy’s said Tuesday it hasn’t selected all of the stores that will be closed yet. There are six stores located in San Diego County.

It expects the locations will have about $300 million in combined revenue.
The company says employees who work at the closing stores may be offered positions at nearby locations, and workers who are laid off will be offered severance benefits.