Macy’s announced Tuesday plans to shutter dozens more stores in the coming years, but it’s not yet known if any additional Hawaii locations are on the chopping block.
In January, the retail giant confirmed the closure of Macy’s at Kings’ Shops in Waikoloa Beach Resort as one of the approximately 30 locations closing nationwide. On Tuesday, the company revealed scores more stores would shutter within the next three years.
The decision was made after Macy’s conducted store-level assessments of each store’s overall value to the fleet, including predicted profitability based on consumer trends and demographics, the 161-year-old company said.
“As a result, Macy’s plans to close approximately 125 of its least-productive stores over the next three years, including approximately 30 stores that are in the process of closure now,” a press release posted on the company’s website reads, also noting that the closures are planned for “lower-tier malls.” “These approximately 125 stores currently account for approximately $1.4 billion in annual sales.”
No additional details were released regarding specific locations, and the company remained mum when questioned by West Hawaii Today regarding the remaining Macy’s locations in Hawaii, particularly the Big Island locations in Kailua-Kona and at the Prince Kuhio Plaza in Hilo.
“We have nothing additional to share at this time,” Emily Workman, media relations director for Macy’s Northwest and Southwest regions, said via email.
In addition to paring down its portfolio of stores, Macy’s said Tuesday it will streamline its organization with a 9% reduction in corporate and support staffing by laying off about 2,000 workers. The company also noted it is “adjusting staffing with reductions in some stores and increases in others.”
Macy’s is also shutting down its second headquarters in Ohio and consolidating its digital headquarters to New York. A customer service center in Arizona will also close and consolidate with facilities in Ohio and Florida.
The company anticipates the moves will save $1.5 billion a year starting in 2022.
Though more closings were announced Tuesday, the company did state it plans to continue its “growth treatment” to remaining stores in its portfolio, including upgrading an additional 100 stores this year. Already, 150 stores have been upgraded.
The company is also expanding its off-price offerings under Backstage and Bloomingdale’s The Outlet by adding dozens more Backstage stores. Also, Macy’s is testing a new smaller store format called “Market by Macy’s” that will will be located off-mall in lifestyle centers.
“Market by Macy’s will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options and a robust community events calendar,” the company said in the press release noting the first location is expected to open Thursday in Dallas.
Macy’s in recent years has closed scores of stores across the nation.
In August 2016, following the closure of 41 stores in 2015, the company announced plans to shutter an additional 100 under-performing stores in an effort to “focus resources on strategic priorities, improve organizational agility and reduce expense.”
In a Jan. 4, 2018, press release, the company said it had closed 124 stores since 2o15, including 81 of the 100 store closings announced in 2016.
So far, Just two Hawaii stores have been closed, including the Waikoloa location and the Ala Moana Jewel Gallery.
Source: Hawaii Tribune Herald
Be First to Comment