MACY’S SHUTTERING UP TO 40 STORES NEXT YEAR

Macy’s will close 35 to 40 underperforming stores early next year the department store chain announced today.

The exact locations will be announced once a study that is currently underway is completed but the company said that they will represent one percent of Macy’s Inc.’s overall sales.

“Physical stores remain absolutely vital to our omnichannel strategy, which provides local touchpoints and tailored merchandise assortments for shoppers in nearly every major market,” said Terry J. Lundgren, Macy’s, Inc. chairman and CEO in a statement. “As new shopping centers are opened, however, many customers change their shopping habits and often the sales volume of a store gets divided among the new and nearby, existing centers. 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. 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.

“Macy’s is already one of the largest and fastest-growing digital platforms in the country. Our fast-growing digital offering, including robust apps and mobile-enhanced websites, integrate with our stores to provide an unparalleled omnichannel shopping experience for customers wherever, whenever and however they prefer to shop. As a result, we are able to attract new customers and grow sales profitably.”

There are currently 770 Macy’s stores. Over the past five years (2010 through 2015 to date), 52 Macy’s stores have been closed and 12 new Macy’s stores have opened. In addition, six new Macy’s Backstage off-price concepts are opening in fall 2015.