Two major US department store groups are closing more than a hundred stores across the country and cutting thousands of jobs amid challenging trading environments and shifting consumer habits.
Macy’s will close 68 stores from its total portfolio of 730 stores in early 2017, followed by approximately 30 more over the next few years as leases expire or sale transactions are completed. Stores set for closure include West Oaks Mall in Houston, Minneapolis Downtown and Mission Valley Apparel in San Diego.
Sears, meanwhile, will close 150 stores, comprising 108 Kmart and 42 Sears in locations including Baton Rouge in Louisiana, Albany in Georgia and Cheyenne in Wyoming.
Terry Lundgren, chairman and CEO of Macy’s, said the firm intends to close around 100 stores over the next few years to help “right-size our physical footprint as we expand our digital reach.
“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 monetising locations with highly valued real estate.”
Edward Lampert, chairman and chief executive of Sears Holdings, echoed his sentiments and said many of its planned closures have struggled with financial performance for years, but that it had kept them open to maintain local jobs in the hope there would be a turnaround.
“But in order to meet our objective of returning to profitability, we have to make tough decisions and will continue to do so, which will give our better-performing stores a chance at success.”