Macy’s has announced a series of actions to streamline its store portfolio, intensify cost efficiency efforts and execute its real estate strategy. The actions include the closure of 68 stores and the reorganization of the field structure that supports the remaining stores. Macy’s believes that reinforcing the strategy of fewer stores will allow them to better their customer service.
These actions are estimated to generate annual expense savings of around $550 million, starting in 2017, which will allow the company to invest an additional $250 million in growling the digital business, store-related growth strategies, Bluemercury, Macy’s Backstage and China
Six of the stores closing are across Pennsylvania:
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)
“Over the past year, we have been focused and disciplined about making strategic decisions to position us to gain market share and return to growth over time. While we are pleased with the strong performance of our highly developed online business, as well as the progress we have made on selling and visual presentation programs and expense reduction initiatives in 2016, we continue to experience declining traffic in our stores where the majority of our business is still transacted. Given the overall trends challenging us and the broader retail industry, and the time needed to execute new strategies, we expect our 2017 change in comparable sales to be relatively consistent with our November/December sales trend,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc.
