HOUSTON- Macy's identified on Wednesday dozens of stores that will be shutting their doors, including 3 stores in the Houston area.
After seeing sales drop during the holidays, it has either closed or will shutter 68 stores and cut an additional 6,200 positions at a time when shoppers are going online to buy everything from scarfs to lipstick.
Houston area store closures: (by the end of year)
- Greenspoint, Houston, TX (314,000 square feet; opened in 1976; 70 associates)
- West Oaks Mall, Houston, TX (244,000 square feet; opened in 1982; 135 associates)
- Pasadena Town Square, Pasadena, TX (209,000 square feet; opened in 1962; 78 associates)
Of the 68 stores scheduled to close, nine had been previously announced and three have already shut down. But the retail giant revealed the locations of the remaining 59 stores, which will be shuttered by the middle of this year and affect 3,900 employees, some of whom may be offered jobs at other locations.
The locations span the country, from Florida to Oregon.
Some of the stores are relatively new to the chain. The Macy's store in the Eastland center in Columbus, Ohio, opened in 2006, and has 73 employees. Some, however, are historic or have been around for decades. Macy's will shutter its store in downtown Minnepolis opened in 1902, where it has 280 employees.
Additionally the retail giant says that it will be cutting "layers of management'' at its central operations, and paring the number of managers supporting stores, making up the bulk of 6,200 jobs that will be lost.
"We continue to experience declining traffic in our stores where the majority of our business is still transacted,'' Terry Lundgren, Macy's CEO said in a statement. In regard to the store closings he added, "we are closing locations that are unproductive or are no longer robust shopping destinations due to changes in the local retail shopping landscape. . . .These are never easy decisions.''
The news did not seem to sooth investors, with Macy's shares plunging 8.7%, to $32.70, in after hours trading
The announcement was in keeping with Macy’s guidance to investors in August that it would be shutting about 100 stores in early 2017, after the holiday rush., to try to reverse sliding sales and profits. The chain also mapped out a strategy to boost revenue, ranging from hosting in-store events to woo foot traffic to enhancing the experience of searching online.
But efforts fell short in the all-important holiday shopping period. The retailer said Wednesday that sales at stores owned or licensed by Macy's and open at least 12 months dropped a combined 2.1% in November and December as compared to those months last year, while sales at stores solely owned by Macy’s and open at least 12 months dropped by 2.7%
Macy's is now reducing its full-year earnings guidance, expecting diluted earnings, not counting special charges, of $2.95 to $3.10 per share, rather than the previously forecast $3.15 to $3.40. Meanwhile, it maintained its full year guidance predicting a 2.5% to 3% drop in comparable sales
The retailer is one of many traditional store chains fighting the headwinds of a retail environment that has been transformed by the surge in online shopping. Sears for instance has shuttered dozens of stores, terminating the leases on 19 under performing locations just this week.
Already Completed 2016 Closings
- Laurel Plaza, North Hollywood, CA (475,000 square feet; opened in 1995; 105 associates);
- Ala Moana Jewel Gallery, Honolulu, HI (2,000 square feet; opened in 1986; 9 associates);
- Valley Fair, West Valley City, UT (106,000 square feet; opened in 1970; 53 associates);
Already Announced Year-End 2016 Closings
Final clearance sales at the following Macy’s stores closing in early 2017 will begin on Monday, January 9, and run for approximately eight to 12 weeks (with the exception of Lancaster Mall*, where final clearance sales are already in progress):
- Greenwood, Bowling Green, KY (124,000 square feet; opened in 1980; 63 associates);
- Carolina Place, Pineville, NC (151,000 square feet; opened in 1993; 69 associates);
- Douglaston, Douglaston, NY (158,000 square feet; opened in 1981; 144 associates);
- Downtown Portland, Portland, OR (246,000 square feet; opened in 2007; 85 associates);
- *Lancaster Mall, Salem, OR (67,000 square feet; opened in 1980; 53 associates);
- Oakwood Mall, Eau Claire, WI (104,000 square feet; opened in 1991; 55 associates)
Year-End Closings
- Mission Valley Apparel, San Diego, CA (385,000 square feet; opened in 1961; 140 associates);
- Paseo Nuevo, Santa Barbara, CA (141,000 square feet; opened in 1990; 77 associates);
- Lakeland Square, Lakeland, FL (101,000 square feet; opened in 1995; 68 associates);
- Oviedo Marketplace, Oviedo, FL (195,000 square feet; opened in 2000; 83 associates);
- Sarasota Square, Sarasota, FL (143,000 square feet; opened in 1977; 86 associates);
- University Square, Tampa, FL (140,000 square feet; opened in 1974; 73 associates);
- CityPlace, West Palm Beach, FL (108,000 square feet; opened in 2000; 72 associates);
- Georgia Square, Athens, GA (121,000 square feet; opened in 1981; 69 associates);
- Nampa Gateway Center, Nampa, ID (104,000, square feet; opened in 2009; 57 associates);
- Alton Square, Alton, IL (180,000 square feet; opened in 1978; 54 associates);
- Stratford Square, Bloomingdale, IL (149,000 square feet; opened in 1981; 87 associates);
- Eastland, Bloomington, IL (154,000 square feet; opened in 1999; 55 associates);
- Jefferson, Louisville, KY (157,000 square feet; opened in 1979; 52 associates);
- Esplanade, Kenner, LA (188,000 square feet; opened in 2008; 101 associates);
- Bangor, Bangor, ME (143,000 square feet; opened in 1998; 65 associates);
- Westgate, Brockton, MA (144,000 square feet; opened in 2003; 79 associates);
- Silver City Galleria, Taunton, MA (152,000 square feet; opened in 1992; 82 associates);
- Lakeview Square Mall, Battle Creek, MI (102,000 square feet: opened 1983; 51 associates);
- Eastland Center, Harper Woods, MI (433,000 square feet; opened in 1957; 121 associates);
- Lansing, Lansing, MI (103,000 square feet; opened in 1979; 57 associates);
- Westland, Westland, MI (334,000 square feet; opened in 1965; 106 associates);
- Minneapolis Downtown, Minneapolis, MN (1,276,000 square feet; opened in 1902; 280 associates);
- Northgate, Durham, NC (187,000 square feet; opened in 1994; 72 associates);
- Columbia, Grand Forks, ND (99,000 square feet; opened in 1978; 53 associates);
- Moorestown, Moorestown, NJ (200,000 square feet; opened in 1999; 107 associates);
- Voorhees Town Center, Voorhees, NJ (224,000 square feet; opened in 1970; 77 associates);
- Preakness, Wayne, NJ (81,000 square feet; opened in 1963; 72 associates);
- Cottonwood, Albuquerque, NM (173,000 square feet; opened in 1996; 56 associates);
- Las Vegas Boulevard, Las Vegas, NV (178,000 square feet; opened in 1966; 84 associates);
- Great Northern, Clay, NY (88,000 square feet; opened in 1989; 55 associates);
- Oakdale Mall, Johnson City, NY (140,000 square feet; opened in 2000; 58 associates);
- The Marketplace, Rochester, NY (149,000 square feet; opened in 1982; 77 associates);
- Eastland, Columbus, OH (121,000 square feet; opened in 2006; 73 associates);
- Sandusky, Sandusky, OH (133,000 square feet; opened in 1979; 61 associates);
- Fort Steuben, Steubenville, OH (132,000 square feet; opened in 1974; 59 associates);
- Promenade, Tulsa, OK (180,000 square feet; opened in 1996; 58 associates);
- Neshaminy, Bensalem, PA (211,000 square feet; opened in 1968; 89 associates);
- Shenango Valley, Hermitage, PA (106,000 square feet; opened in 1976; 69 associates);
- Beaver Valley, Monaca, PA (203,000 square feet; opened in 1987; 78 associates);
- Lycoming, Muncy, PA (120,000 square feet; opened in 1995; 61 associates);
- Plymouth Meeting, Plymouth Meeting, PA (214,000 square feet; opened in 1966; 74 associates);
- Washington Crown Center, Washington, PA (148,000 square feet; opened in 1999; 67 associates);
- Parkdale, Beaumont, TX (171,000 square feet; opened in 2002; 67 associates);
- Southwest Center, Dallas, TX (148,000 square feet; opened in 1975; 68 associates);
- Sunland Park, El Paso, TX (105,000 square feet; opened in 2004; 71 associates);
- Greenspoint, Houston, TX (314,000 square feet; opened in 1976; 70 associates);
- West Oaks Mall, Houston, TX (244,000 square feet; opened in 1982; 135 associates);
- Pasadena Town Square, Pasadena, TX (209,000 square feet; opened in 1962; 78 associates);
- Collin Creek, Plano, TX (199,000 square feet; opened in 1980; 103 associates);
- Broadway Square, Tyler, TX (100,000 square feet; opened in 1981; 65 associates);
- Layton Hills, Layton, UT (162,000 square feet; opened in 1980; 72 associates);
- Cottonwood, Salt Lake City, UT (200,000 square feet; opened in 1962; 88 associates);
- Landmark, Alexandria, VA (201,000 square feet; opened in 1965; 119 associates);
- River Ridge, Lynchburg, VA (144,000 square feet; opened in 1980; 60 associates);
- Everett, Everett, WA (133,000 square feet; opened in 1977; 109 associates);
- Three Rivers, Kelso, WA (51,000 square feet; opened in 1987; 57 associates);
- Valley View, La Crosse, WI (101,000 square feet; opened in 1980; 57 associates)
Other 2017 Closings
- Simi Valley Town Center (men’s/home/kids), Simi Valley, CA (190,000 square feet; opened in 2006; 105 associates);
- Mall at Tuttle Crossing (furniture/home/kids/men's), Dublin, OH (227,000 square feet; opened in 2003; 52 associates)
Stores Sold (or to be Sold) and Leased Back
These stores have been or will be sold, and Macy's will continue to operate them on leases from the owners:
- Stonestown Galleria, San Francisco, CA (280,000 square feet; opened in 1952; 204 associates);
- Union Square Men’s, San Francisco, CA (248,000 square feet; opened in 1974; 256 associates; as previously announced);
- Tyson’s Galleria, McLean, VA (265,000 square feet; opened in 1988; 122 associates; as previously announced)
(The number of associates given by store reflects the number of positions eliminated. Many of these associates will be placed in other positions.)