Macy's to Close Up to 40 Stores in Early 2016
Macy's announced it will close 35 to 40 underperforming stores across the country in early 2016.
In a press statement, the company revealed that it has decided to shut down about 5 percent of its total locations, which accounts for 1 percent of the company's total sales.
"Each year, we prune some stores that are our weakest performers so that we can concentrate our resources on the best locations and maintain a strong physical presence," said Macy's CEO Terry J. Lundgren in the statement. "At the same time, we open a small number of new stores to fill gaps in our market coverage or where we have outstanding real estate opportunities."
A list of the exact locations and number of employees that will be affected by the closings has yet to be announced, said a Macy's spokesman. The corporation added that all employees at the closing locations will be notified before the list is released to the public.
"Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits," reads the statement.
In the meantime, the retailer plans to open six new "Macy's Backstage" locations, which is an off-price store that sells discounted merchandise. Some of the new stores will replace the locations of stores that closed.
The announcement comes eight months after the major retailer announced the closure of 14 stores in 2015 as part of a restructuring plan to boost online sales.
One of the stores that recently closed was the location in downtown Pittsburgh, despite the fact that it had been the last major department store in the center city. According to Macy's, the company has shuttered 52 locations in total and opened 12 new stores since 2010.
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