Poor 2015 sales performances have driven retailer Macy's to announce it will be closing 40 of its 770 stores, including five in New York, and cutting staff.
The company said it will consolidate existing Macy's stores into five regions and 47 local districts, down from seven regions and 58 local districts, as well as other field support functions, according to a statement.
"This reflects a smaller portfolio of stores and new technologies and techniques for managing the store business and tailoring assortments to local customer preferences," said the release.
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations," said Terry J. Lundgren, chairman and chief executive officer at Macy's Inc.
"Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity. We will continue to invest in strategic initiatives that anticipate emerging customer needs and create shareholder value."
An average of three to four positions will be affected in each of Macy’s and Bloomingdale’s approximately 770 going-forward stores (out of an average workforce of approximately 150 associates in each store), for a total of about 3,000 affected associates nationwide. Roughly 50 percent of affected store associates are expected to be placed in other positions.
The following New York stores will close in 2016:
- McKinley Mall main store, Buffalo (88,000 square feet; opened in 1989; 65 associates).
- McKinley Mall home store, Buffalo (31,000 Square feet; opened in 1989; 10 associates).
- Arnot Mall, Horsehead (120,000 square feet; opened in 1995; 79 associates).
- Hudson Valley Mall, Kingston (121,000 square feet; opened in 1995; 72 associates).
- Eastern Hills Mall, Williamsville (127,000 square feet; opened in 1971; 80 associates).
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