Jan 8, 2009 5:39 am US/Pacific
Macy's To Close Some Stores
NEW YORK (CBS13/AP) ―
Macy's says it will close 11 underperforming stores in 9 states -- affecting 960 employees -- after one of the weakest holiday seasons in years.
Stores slated for closure include locations in Los Angeles, West Palm Beach, Nashville and St. Louis, among others. Cincinnati-based Macy's Inc. says the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter.
"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," Terry Lundgren, chairman, president and chief executive officer of Macy's, Inc.said in a press release.
The news comes as Macy's says its December sales at stores open at least a year, or same-store sales, fell 4 percent. That's better than the 5.3 percent drop analysts surveyed by Thomson Reuters were expecting. However, Macy's is lowering its forecast for the fourth quarter and full year due to heavy markdowns.
Stores to be closed are located in:
-- Ernst & Young Plaza (Citicorp Plaza), Los Angeles, CA (135,000 square feet; 136 employees; opened in 1986)
-- The Citadel, Colorado Springs, CO (195,000 square feet; 105 employees; opened in 1984)
-- Westminster Mall, Westminster, CO (156,000 square feet; 110 employees; opened in 1986)
-- Palm Beach Mall, 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, Indianapolis, IN (160,000 square feet; 84 employees; opened in 1974)
-- Brookdale Center, Brooklyn Center, MN (195,000 square feet; 72 employees; opened in 1966)
-- Crestwood Mall, St. Louis, MO (166,000 square feet; 176 employees; opened in 1969)
-- Natrona Heights Plaza, Natrona Heights, PA (73,000 square feet; 124 employees; opened in 1956)
-- Century III Furniture and Clearance, West Mifflin, PA (83,000 square feet; 3 employees; opened in 2000)
-- Bellevue Center, 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).
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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