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VOL. 40 | NO. 53 | Friday, December 30, 2016

Macy's to close 68 stores, none in Tennessee

SARAH SKIDMORE SELL

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Macy's says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.

The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared to the same period last year. Macy's Inc. pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.

As if to underscore that point, Kohl's Corp. also reported disappointing holiday shopping numbers Wednesday.

Macy's said the 68 store closures, which span the nation, are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017.

Some employees may be offered positions at nearby stores, but Macy's estimates that 3,900 employees will be affected by the closures.

Macy's also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.

The company, which has been under pressure from investors to sell some of its valuable real estate, is selling or has sold three locations. It is leasing the properties back and will keep operating those stores.

Overall, Macy's said, the job reductions represent about 7 percent of its workforce.

The company, which owns the Macy's and Bloomingdale's brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted.

Longtime CEO Terry Lundgren, who is stepping down early this year and will be succeeded by Macy's President Jeff Gennette, said in a statement the company is closing stores that are "unproductive or are no longer robust shopping destinations" as well as selling those with highly valued real estate.

Macy's has seen sales growth slow as it and other traditional department store chains face competition from online and off-price rivals. It has tried new ways to attract shoppers, such as by offering more exclusive products, designating areas featuring "smart watches" and launching an Apple shop at its flagship New York store in Herald Square.

The company said Wednesday it plans to invest some of its savings in growing its digital business.

It said it now expects to earn between $2.95 and $3.10 per share on an adjusted basis for its 2016 fiscal year, versus its prior forecast of $3.15 to $3.40 per share. The company is scheduled to report full results in February.

Shares in Macy's fell more than 10 percent to $32.20 in after-hours trading.

Kohl's shares fell almost 15 percent to $44.15 after it cut its earnings guidance for fiscal 2016. It now expects $3.60 to $3.65 a share on an adjusted basis, down from its previous forecast of $3.80 to $4.00 per share.

Macy's already completed 2016 closings

•Laurel Plaza, North Hollywood, CA (475,000 square feet; opened in 1995; 105 associates);

•Ala Moana Jewel Gallery, Honolulu, HI (2,000 square feet; opened in 1986; 9 associates);

•Valley Fair, West Valley City, UT (106,000 square feet; opened in 1970; 53 associates);
Macy's already announced year-end 2016 closings

Final clearance sales at the following Macy's stores closing in early 2017 will begin on Monday, January 9, and run for approximately eight to 12 weeks (with the exception of Lancaster Mall*, where final clearance sales are already in progress):

•Greenwood, Bowling Green, KY (124,000 square feet; opened in 1980; 63 associates);

•Carolina Place, Pineville, NC (151,000 square feet; opened in 1993; 69 associates);

•Douglaston, Douglaston, NY (158,000 square feet; opened in 1981; 144 associates);

•Downtown Portland, Portland, OR (246,000 square feet; opened in 2007; 85 associates);

•*Lancaster Mall, Salem, OR (67,000 square feet; opened in 1980; 53 associates);

•Oakwood Mall, Eau Claire, WI (104,000 square feet; opened in 1991; 55 associates)
Macy's year-end closings

•Mission Valley Apparel, San Diego, CA (385,000 square feet; opened in 1961; 140 associates);

•Paseo Nuevo, Santa Barbara, CA (141,000 square feet; opened in 1990; 77 associates);

•Lakeland Square, Lakeland, FL (101,000 square feet; opened in 1995; 68 associates);

•Oviedo Marketplace, Oviedo, FL (195,000 square feet; opened in 2000; 83 associates);

•Sarasota Square, Sarasota, FL (143,000 square feet; opened in 1977; 86 associates);

•University Square, Tampa, FL (140,000 square feet; opened in 1974; 73 associates);

•CityPlace, West Palm Beach, FL (108,000 square feet; opened in 2000; 72 associates);

•Georgia Square, Athens, GA (121,000 square feet; opened in 1981; 69 associates);

•Nampa Gateway Center, Nampa, ID (104,000, square feet; opened in 2009; 57 associates);

•Alton Square, Alton, IL (180,000 square feet; opened in 1978; 54 associates);

•Stratford Square, Bloomingdale, IL (149,000 square feet; opened in 1981; 87 associates);

•Eastland, Bloomington, IL (154,000 square feet; opened in 1999; 55 associates);

•Jefferson, Louisville, KY (157,000 square feet; opened in 1979; 52 associates);

•Esplanade, Kenner, LA (188,000 square feet; opened in 2008; 101 associates);

•Bangor, Bangor, ME (143,000 square feet; opened in 1998; 65 associates);

•Westgate, Brockton, MA (144,000 square feet; opened in 2003; 79 associates);

•Silver City Galleria, Taunton, MA (152,000 square feet; opened in 1992; 82 associates);

•Lakeview Square Mall, Battle Creek, MI (102,000 square feet: opened 1983; 51 associates);

•Eastland Center, Harper Woods, MI (433,000 square feet; opened in 1957; 121 associates);

•Lansing, Lansing, MI (103,000 square feet; opened in 1979; 57 associates);

•Westland, Westland, MI (334,000 square feet; opened in 1965; 106 associates);

•Minneapolis Downtown, Minneapolis, MN (1,276,000 square feet; opened in 1902; 280 associates);

•Northgate, Durham, NC (187,000 square feet; opened in 1994; 72 associates);

•Columbia, Grand Forks, ND (99,000 square feet; opened in 1978; 53 associates);

•Moorestown, Moorestown, NJ (200,000 square feet; opened in 1999; 107 associates);

•Voorhees Town Center, Voorhees, NJ (224,000 square feet; opened in 1970; 77 associates);

•Preakness, Wayne, NJ (81,000 square feet; opened in 1963; 72 associates);

•Cottonwood, Albuquerque, NM (173,000 square feet; opened in 1996; 56 associates);

•Las Vegas Boulevard, Las Vegas, NV (178,000 square feet; opened in 1966; 84 associates);

•Great Northern, Clay, NY (88,000 square feet; opened in 1989; 55 associates);

•Oakdale Mall, Johnson City, NY (140,000 square feet; opened in 2000; 58 associates);

•The Marketplace, Rochester, NY (149,000 square feet; opened in 1982; 77 associates);

•Eastland, Columbus, OH (121,000 square feet; opened in 2006; 73 associates);

•Sandusky, Sandusky, OH (133,000 square feet; opened in 1979; 61 associates);

•Fort Steuben, Steubenville, OH (132,000 square feet; opened in 1974; 59 associates);

•Promenade, Tulsa, OK (180,000 square feet; opened in 1996; 58 associates);

•Neshaminy, Bensalem, PA (211,000 square feet; opened in 1968; 89 associates);

•Shenango Valley, Hermitage, PA (106,000 square feet; opened in 1976; 69 associates);

•Beaver Valley, Monaca, PA (203,000 square feet; opened in 1987; 78 associates);

•Lycoming, Muncy, PA (120,000 square feet; opened in 1995; 61 associates);

•Plymouth Meeting, Plymouth Meeting, PA (214,000 square feet; opened in 1966; 74 associates);

•Washington Crown Center, Washington, PA (148,000 square feet; opened in 1999; 67 associates);

•Parkdale, Beaumont, TX (171,000 square feet; opened in 2002; 67 associates);

•Southwest Center, Dallas, TX (148,000 square feet; opened in 1975; 68 associates);

•Sunland Park, El Paso, TX (105,000 square feet; opened in 2004; 71 associates);

•Greenspoint, Houston, TX (314,000 square feet; opened in 1976; 70 associates);

•West Oaks Mall, Houston, TX (244,000 square feet; opened in 1982; 135 associates);

•Pasadena Town Square, Pasadena, TX (209,000 square feet; opened in 1962; 78 associates);

•Collin Creek, Plano, TX (199,000 square feet; opened in 1980; 103 associates);

•Broadway Square, Tyler, TX (100,000 square feet; opened in 1981; 65 associates);

•Layton Hills, Layton, UT (162,000 square feet; opened in 1980; 72 associates);

•Cottonwood, Salt Lake City, UT (200,000 square feet; opened in 1962; 88 associates);

•Landmark, Alexandria, VA (201,000 square feet; opened in 1965; 119 associates);

•River Ridge, Lynchburg, VA (144,000 square feet; opened in 1980; 60 associates);

•Everett, Everett, WA (133,000 square feet; opened in 1977; 109 associates);

•Three Rivers, Kelso, WA (51,000 square feet; opened in 1987; 57 associates);

•Valley View, La Crosse, WI (101,000 square feet; opened in 1980; 57 associates)
Other 2017 closings

•Simi Valley Town Center (men's/home/kids), Simi Valley, CA (190,000 square feet; opened in 2006, 105 associates);

•Mall at Tuttle Crossing (furniture/home/kids/men's), Dublin, OH (227,000 square feet, opened in 2003, 52 associates)
Stores sold (or to be sold) and leased back

These stores have been or will be sold, and Macy's will continue to operate them on leases from the owners:

•Stonestown Galleria, San Francisco, CA (280,000 square feet: opened in 1952: 204 associates);

•Union Square Men's, San Francisco, CA (248,000 square feet: opened in 1974) 256 associates; as previously announced);

•Tyson's Galleria, McLean, VA (265,000 square feet; opened in 1988; 122 associates; as previously announced

(The number of associates given by store reflects the number of positions eliminated. Many of these associates will be placed in other positions.)

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 0 0
MORTGAGES 0 0 0
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 0 0 0
BANKRUPTCIES 0 0 0
BUSINESS LICENSES 0 0 0
UTILITY CONNECTIONS 0 0 0
MARRIAGE LICENSES 0 0 0