So much for a Miracle on 34th Street.
Macy’s (M) on Wednesday said would close 63 stores this spring and eliminate 10,000 jobs as the struggling department store chain continued to grapple with weak sales during the holiday season.
The retailer also announced that comparable sales, which include its booming e-commerce business and sales at stores open at least a year, fell 2.1% in November and December, prompting it to slash its full year profit forecast. Shares were down 10% in afterhours trading.
Of the 10,000 jobs being cut, 3,900 will be at stores being closed this year as part of a plan announced in August when Macy’s announced it would close 100 of its 730 namesake stores in the coming years. (Macy’s Inc also operates the upscale Bloomingdale’s chain.) Another 6,200 job cuts will come from streamlining operations and cutting costs so it can focus more on its digital business. Macy’s e-commerce was a rare bright spot in a bleak holiday season report: online sales rose by a double digit percentage during the holidays, the company said.
“We are closing locations that are unproductive or are no longer robust shopping destinations due to changes in the local retail shopping landscape, as well as monetizing locations with highly valued real estate,” said Macy’s CEO Terry Lundgren, who is stepping down next month as previously announced. Lundgren, who will be replaced by long time Macy’s executive Jeff Gennette, said he expects comparable sales declines in 2017 similar to those during the recent holiday sales. The weak holiday season comes on the heels of seven straight quarters of comparable sales declines.
Macy’s has said it would redouble its presentation and focus on its 150 very best stores, locations such as its Herald Square flagship in Manhattan and its stores in downtown Chicago and San Francisco. But the other stores in its fleet are clearly still hurting as everyone from Amazon.com (AMZN) to Ulta Beauty (ULTA) is chipping away at the department store giant’s market share.
Macy’s now expects its profit for the fiscal year ending at the end of this month to be $2.95 to $3.10 per share, well below its previous forecast of $3.15 to $3.40 per share.
The retailer’s poor performance, which was echoed by dismal numbers at Kohl’s (KSS), comes despite efforts to get Macy’s back on track. Those include Apple boutiques at 180 stores, a big push in its private label business and an expansion of its outlet chain, but so far Macy’s has little to show for it.
Here are the Macy’s stores that are closing this year:
Final clearance sales are underway or will begin on Monday at these stores:
- Greenwood, Bowling Green, KY
- Carolina Place, Pineville, NC
- Douglaston, Douglaston, NY
- Downtown Portland, Portland, OR
- Lancaster Mall, Salem, OR
- Oakwood Mall, Eau Claire, WI
Closing this spring:
- Mission Valley Apparel, San Diego, CA
- Paseo Nuevo, Santa Barbara, CA
- Lakeland Square, Lakeland, FL
- Oviedo Marketplace, Oviedo, FL
- Sarasota Square, Sarasota, FL
- University Square, Tampa, FL
- CityPlace, West Palm Beach, FL
- Georgia Square, Athens, GA
- Nampa Gateway Center, Nampa, ID
- Alton Square, Alton, IL
- Stratford Square, Bloomingdale, IL
- Eastland, Bloomington, IL
- Jefferson, Louisville, KY
- Bangor, Bangor, ME
- Esplanade, Kenner, LA
- Westgate, Brockton, MA
- Silver City Galleria, Taunton, MA
- Lakeview Square Mall, Battle Creek, MI
- Eastland Center, Harper Woods, MI
- Lansing, Lansing, MI
- Westland, Westland, MI
- Minneapolis Downtown, Minneapolis, MN
- Northgate, Durham, NC
- Columbia, Grand Forks, ND
- Moorestown, Moorestown, NJ
- Voorhees Town Center, Voorhees, NJ
- Preakness, Wayne, NJ
- Cottonwood, Albuquerque, NM
- Las Vegas Boulevard, Las Vegas, NV
- Great Northern, Clay, NY
- Oakdale Mall, Johnson City, NY
- The Marketplace, Rochester, NY
- Eastland, Columbus, OH
- Sandusky, Sandusky, OH
- Fort Steuben, Steubenville, OH
- Promenade, Tulsa, OK
- Neshaminy, Bensalem, PA
- Shenango Valley, Hermitage, PA
- Beaver Valley, Monaca, PA
- Lycoming, Muncy, PA
- Plymouth Meeting, Plymouth Meeting, PA
- Washington Crown Center, Washington, PA
- Parkdale, Beaumont, TX
- Southwest Center, Dallas, TX
- Sunland Park, El Paso, TX
- Greenspoint, Houston, TX
- West Oaks Mall, Houston, TX
- Pasadena Town Square, Pasadena, TX
- Collin Creek, Plano, TX
- Broadway Square, Tyler, TX
- Layton Hills, Layton, UT
- Cottonwood, Salt Lake City, UT
- Landmark, Alexandria, VA
- River Ridge, Lynchburg, VA
- Everett, Everett, WA
- Three Rivers, Kelso, WA
- Valley View, La Crosse, WI
Closing later in 2017:
- Simi Valley Town Center, Simi Valley, CA (190,000 square feet; opened in 2006; 105 associates);
- Mall at Tuttle Crossing (furniture/home/kids/men’s), Dublin, OH
Macy’s will close at another 30 stores in the coming years.
