January 04, 2017
In a move designed to streamline its store portfolio, Macy's announced Wednesday that it will eliminate 68 locations nationwide, including four in the Philadelphia area, and shed about 10,000 jobs in the process.
The decision marks the next phase of an initiative revealed last August to shutter about 100 stores, a plan the company expects will generate savings of about $550 million.
“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," said Macy's chairman and CEO Terry J. Lundgren. "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."
In the Philadelphia area, the following four stores will be closing:
• Neshaminy Mall, Bensalem, Bucks County (211,000 square feet; opened in 1968; 89 associates)
• Plymouth Meeting Mall, Montgomery County (214,000 square feet; opened in 1966; 74 associates)
• Moorestown Mall, Burlington County (200,000 square feet; opened in 1999; 107 associates)
• Voorhees Town Center, Voorhees, Camden County (224,000 square feet; opened in 1970; 77 associates)
Macy's operates about 880 stores in 45 states and other territories under the banner of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury, as well as their affiliated retail websites. The company expects that the closures will negatively impact 2017 sales by about $575 million.
With the closures, Macy's intends to invest an additional $250 million in its digital business and store-related growth strategies.