MACY’S TO CLOSE 11 STORES, INCLUDING MAUNA LANI

Macy’s, Inc. today announced the closing of 11 underperforming Macy’s stores, including the retail location at the Mauna Lani Bay Hotel on the Island of Hawaii.  The 3,000 square foot store opened in 1983 and had 3 employees.

Macy’s CEO Terry J. Lundgren said in a statement today, “These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores.”  He said, “While new store growth has slowed in the current economy, our long-term strategy is to continue to selectively add new stores while closing those that are underperforming.”

“The decision to close stores is difficult, and often occurs when the market changes, new competing shopping centers are opened nearby to existing older ones, or when customers change shopping habits. In the store closing process, we are committed to treating affected associates with respect and openness,” Lundgren said.

In a news release issued today, Macy’s officials said affected associates in good standing may be considered for open positions at other Macy’s locations. Officials with the retailer said regular full-time and part-time associates who are laid off due to a store closing will be provided severance benefits and outplacement assistance.

Costs associated with the store closings will be approximately $65 million (of which approximately $12 million will be cash), most of which will be booked in the fourth quarter of 2008.

The complete list of Macy’s closures announced today include locations at:  Ernst & Young Plaza in Los Angeles, CA (135,000 square feet; 136 employees; opened in 1986); The Citadel in Colorado Springs, CO (195,000 square feet; 105 employees; opened in 1984); Westminster Mall in Westminster, CO (156,000 square feet; 110 employees; opened in 1986); Palm Beach Mall in West Palm Beach, FL (190,000 square feet; 71 employees; opened in 1979); Mauna Lani Bay Hotel, Island of Hawaii, HI (3,000 square feet; 3 employees; opened in 1983); Lafayette Square in Indianapolis, IN (160,000 square feet; 84 employees; opened in 1974);  Brookdale Center in Brooklyn Center, MN (195,000 square feet; 72 employees; opened in 1966); Crestwood Mall in St. Louis, MO (166,000 square feet; 176 employees; opened in 1969); Natrona Heights Plaza in Natrona Heights, PA (73,000 square feet; 124 employees; opened in 1956); Century III Furniture and Clearance in West Mifflin, PA (83,000 square feet; 3 employees; opened in 2000); and Bellevue Center in Nashville, TN (211,000 square feet; 76 employees; opened in 1990).   Final clearance sales at these stores will begin within the next week (with the exception of the Hawaii location, which will not hold a final clearance sale).

(Posted:  Thursday, January 08, 2009)  (Photo by Wendy Osher)