Macy's to close 11 underperforming stores

The store closings will affect 960 employees. The department store operator also lowered its forecast for the fourth quarter after one of the weakest holiday seasons in years.

The consumer slowdown has taken its toll on department store operator Macy's (M, news, msgs).
The Cincinnati company this morning said it will close 11 underperforming stores in nine states, affecting 960 employees.

"The decision to close stores is difficult, and often occurs when the market changes, new competing shopping centers are opened nearby to existing older ones, or when customers change shopping habits. In the store closing process, we are committed to treating affected associates with respect and openness," Chief Executive Officer Terry Lundgren said in a press release.
The locations of stores affected:

• Ernst & Young Plaza (Citicorp Plaza), Los Angeles (135,000 square feet; 136 employees; opened in 1986).
  
• The Citadel, Colorado Springs, Colo. (195,000 square feet; 105 employees; opened in 1984).
  
• Westminster Mall, Westminster, Colo. (156,000 square feet; 110 employees; opened in 1986).
  
• Palm Beach Mall, West Palm Beach, Fla. (190,000 square feet; 71 employees; opened in 1979).
  
• Mauna Lani Bay Hotel, Island of Hawaii (3,000 square feet; three employees; opened in 1983).
  
• Lafayette Square, Indianapolis (160,000 square feet; 84 employees; opened in 1974).
  
• Brookdale Center, Brooklyn Center, Minn. (195,000 square feet; 72 employees; opened in 1966).
  
• Crestwood Mall, St. Louis (166,000 square feet; 176 employees; opened in 1969).
  
• Natrona Heights Plaza, Natrona Heights, Pa. (73,000 square feet; 124 employees; opened in 1956).
  
• Century III Furniture and Clearance, West Mifflin, Pa. (83,000 square feet; three employees; opened in 2000).
  
• Bellevue Center, Nashville, Tenn. (211,000 square feet; 76 employees; opened in 1990).
  

"These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," Lundgren said.
Shares of Macy's were up 5 cents at $11.26 in early-afternoon trading.

Weak December for Macy's

The department store also said same-store sales fell 4% in December, slightly better than the 5.3% decline analysts had expected. But same-store sales fell 7.5% for the November-December holiday season, illustrating the difficulty Macy's and other retailers faced last year.

Macy's expects to earn between 90 cents and $1 per share for its fourth quarter ending Jan. 31, below the consensus estimate of $1.12.

For the full year, Macy's now expects to earn between $1.10 and $1.20 per share, down from earlier guidance of between $1.30 and $1.50 per share. Analysts are looking for $1.35 per share for the full year, ending Jan. 31.

Thank goodness dey na closing the one by me

good for u.... i know that bad thing i coming say but i was in LA and a store down there was being close... girl every single thing in the store was 80% off. from clothings to footwear etc. i got a Sarah Jessica Parker long winter coat for $6.00 amongst the numerous other stuff i bought... am still dancing from that steal of a buy

LadyFlo wrote:

good for u.... i know that bad thing i coming say but i was in LA and a store down there was being close... girl every single thing in the store was 80% off. from clothings to footwear etc. i got a Sarah Jessica Parker long winter coat for $6.00 amongst the numerous other stuff i bought... am still dancing from that steal of a buy

Whaaa? 80%. I was thinking the reductions would not be to great since they can move their inventory around to other stores still open. Steve & Barry went out of business here in Tenn. We spent maybe 100.00 there and got all kinna athletic gear for everybody in the house, school clothes and scoobies...plenty, plenty. Hoodies, sweat, t-shirts, button downs for 1.00. 3 down coats for 10.00.

One African woman was there with two buggies stuffed full and overflowing. Her total was 75.00. It wa na easy inside dere.

The way Liberian women can spend money and the one in Brooklyn cntr in Minnesota closing?  Mus be real competition there

Nica wrote:

LadyFlo wrote:

good for u.... i know that bad thing i coming say but i was in LA and a store down there was being close... girl every single thing in the store was 80% off. from clothings to footwear etc. i got a Sarah Jessica Parker long winter coat for $6.00 amongst the numerous other stuff i bought... am still dancing from that steal of a buy

Whaaa? 80%. I was thinking the reductions would not be to great since they can move their inventory around to other stores still open. Steve & Barry went out of business here in Tenn. We spent maybe 100.00 there and got all kinna athletic gear for everybody in the house, school clothes and scoobies...plenty, plenty. Hoodies, sweat, t-shirts, button downs for 1.00. 3 down coats for 10.00.

One African woman was there with two buggies stuffed full and overflowing. Her total was 75.00. It wa na easy inside dere.

It was a Steve & Barry store in Baton Rouge and folks were running from one corner to the other stuffing things in their buggies. too bad all the ladies shoes were gone went i get there but i still got enough great things that had my one buggie overflowing and my total was 28 bucks.