Macy’s store closures

Macy'sMacy’s plans to close 35 to 40 underperforming stores – representing approximately one per cent of total sales – in early 2016 as the company works to optimise its omnichannel approach.

“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 chairman and CEO.

“As new shopping centres 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 centres.

“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.”

Today Macy’s operates 770 stores. Over the past five years 52 Macy’s stores have closed and 12 new Macy’s stores have been opened. In addition, six new Macy’s Backstage offprice locations are opening in the second half of 2015.

Lundgren added that Macy’s is 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,” Lundgren said.

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