Macy’s identifies stores it will close, plans further monetization of real estate portfolio
Publish Date: January 05, 2017
Macy’s, Inc., identified Wednesday 65 stores that it will close this year, pointing to declining sales and citing a strategy to shift resources to its other stores and to building up its omni-channel operations. The announcement follows the company’s statement last August that it intends to close 100 stores. Of these 65 stores, all will closed early this coming spring except for two, which are to be closed sometime in midyear.
“As we’ve noted, it is essential that we maintain a healthy portfolio of the right stores in the right places,” said Chairman and CEO Terry J. Lundgren. “Our plan to close approximately 100 stores over the next few years is an important part of our strategy to help us rightsize our physical footprint as we expand our digital reach. 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.”
The company says it expects to save about $550 million this year and will invest a further $250 million in its digital business, its remaining Macy’s stores, its Bluemercury beauty-specialty and Macy’s Backstage outlet stores, plus on expanding in China.
A list of the stores to be closed may be found here.
The company is also selling to General Growth Properties its store at Stonestown Galleria, in San Francisco, for $41 million, which it will then lease back. This follows similar sale-leaseback deals for Union Square Men’s, also in San Francisco, and Tysons Galleria, in McLean, Va.
Meanwhile, two new Macy’s and two Bloomingdale’s stores are planned. The Macy’s stores will be in Westfield Century City, Los Angeles; and at Fashion Place, in Murray, Utah. The Bloomingdale’s stores will be at Westfield Valley Fair, in San Jose, Calif.; and The SoNo Collection, in Norwalk, Conn.
In addition, over the next two years, the company has plans to open approximately 50 additional Macy’s Backstage off-price stores — all of them inside existing Macy’s stores — and about as many Bluemercury stores, some freestanding and others as shops inside existing Macy’s stores.
In the Middle East, meanwhile, under license agreements with Al Tayer Group, a new Bloomingdale’s store is planned to open at 360 Mall, in Al Zahra, Kuwait, this spring, and new Macy’s and Bloomingdale’s stores are to open at Al Maryah Central, in Abu Dhabi, United Arab Emirates, next year.