January 05, 2017 06:45 AM
The Macy’s located at Cottonwood Mall is among the 68 locations to close across the nation, the retailer announced Wednesday.
In a statement, Macy's officials say this round of store closures is part of 100 closing announced since last August. The retailer states it will shift to a strategy with fewer stores “with better customer service.”
The statement says the Cottonwood Macy’s is among its planned year-end closings. Macy’s already shuttered three stores in 2016, while 63 stores will close this spring and two more will shut down by the middle of the year. Specific dates were not revealed. Some stores listed under year-end closings have been open since the 1960s.
More than 10,000 jobs will be cut nationwide. Some employees could move to other locations, and Macy's says 3,900 employees will be impacted. The 173,000-square-foot Cottonwood location employs 56 people and has operated since the mall opened in 1996.
Albuquerque’s other Macy’s store at Coronado Center is not among the intended closures in Wednesday’s announcement.
Macy’s officials say they plan to restructure its operations and sell some of its properties, causing another 6,200 job cuts. The retailer expects the moves to save about $550 million annually. It allows Macy’s to invest an additional $250 million toward its digital business and store-related strategies, according to the statement.
Terry J. Lundgren, chairman and CEO of Macy’s Inc., said it’s never easy to make these kinds of decisions.
“Our plan to close approximately 100 stores over the next few years is an important part of our strategy to help us right-size our physical footprint as we expand our digital reach,” he said. “We are closing locations that are unproductive or are no longer robust shopping destinations due to changes in the local retail shopping landscape, as well as monetizing locations with highly valued real estate. “These are never easy decisions, and we are committed to treating associates affected by these closings with respect and transparency.”
According to a report from CNBC, Macy’s shares have dropped more than 9 percent Wednesday following a lackluster holiday season. According to the Associated Press, the retailer said sales at its established stores fell 2.1 percent in November and December compared to the same period last year.
Macy's 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 AP reports. The company is scheduled to report full results in February.
KOB reached out to Cottonwood Mall officials for comment. A statement from General Manager B Janecka did not address the Macy’s closure.
“Cottonwood Mall continues to evolve by providing shoppers with the brands they seek,” she said. “We look forward to continuing to expand our retail mix with exciting new additions in the future.”
Cottonwood Mall lost another tenant last year when Sports Authority shut down last May. The sporting goods chain closed all its stores after declaring bankruptcy. That space remains empty.
Updated: January 05, 2017 06:45 AM
Created: January 04, 2017 03:31 PM
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