Macy’s Plans Store Closings

By Lucy Mitchell
Jan 5 2011

Macy’s, one of the longest running retail stores in the US, announced this morning that they would be closing several stores this year.

Like many retailers, Macy’s is spending the next month checking the books after the busy holiday season. The accountants are looking for ways to trim the fat and in doing so the retail company will close several stores in the coming year.

The store closures are based on underperformance by the locations. Macy’s is what has come to be known as a high-end retailer. They avoid the trappings of other companies, such as Wal-Mart, and stick with designer fashions and top of the line accessories.

Macy’s was also hit hard by the devastating financial crisis in the US. Fewer consumers were willing to pay the high prices that the company wanted and were migrating to the lower cost alternatives such as online shopping companies.

Things have changed over the past several months though. Macy’s has reported higher than usual same store sales at several locations and they have also enjoyed a surge in profits from the standard pricing schedule that the company has laid out.

Macy’s leadership said today that the store closures would happen over a period of several months and that most employees will be offered jobs at other locations if possible.

The total number of people with their jobs in danger is expected to be around 500. Macy’s expects that more than half of the employees will be placed with other stores.