Macy's to close 11 stores, two in Pittsburgh area
NEW YORK -- Department-store operator Macy's Inc. said today it will close 11 underperforming stores in nine states -- affecting 960 employees -- and lowered its forecast for the fourth quarter after one of the weakest holiday seasons in years.
Stores slated to close include a store in the Natrona Heights Plaza and a furniture and clearance location at the Century III Mall in West Mifflin.
Cincinnati-based Macy's Inc. says the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter.
Clearance sales at the stores begin next week.
"These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," said Macy's Chief Executive Terry J. Lundgren in a statement.
Employees at the stores that are closing may be considered for open positions at other Macy's stores, the company said.
Department-store operators have been among the harder-hit in the retail sector as consumers cut back amid the recession, hunting for bargains and trading down to discounters.
Macy's reported Thursday that its December sales at stores open at least a year, or same-store sales, fell 4 percent -- still not as bad as the 5.3 percent drop analysts surveyed by Thomson Reuters were expecting.
Total sales for the five-week period ended Jan. 3 fell 5 percent to $4.4 billion from $4.61 billion last year.
Same-store sales fell 7.5 percent during the combined November and December holiday period. Macy's said the holiday season ended with improving sales in the fourth and fifth weeks of December but that sales were sluggish before that.
The company said it marked items down sharply in the fourth quarter to gain sales and reduce its inventories, but that hurt its margins and led it to lower its profit forecast for the fourth quarter and full year.
Macy's now expects earnings of 90 cents to $1 per share in the fourth quarter, down from its previous guidance of $1.10 to $1.30 per share. Analysts expect earnings of $1.11 per share.
For the full year, the company now expects to earn $1.10 to $1.20 per share, down from its previous forecast of $1.30 to $1.50 per share. Analysts expect a profit of $1.35 per share.Additional Information:
Department-store operator Macy's Inc. is closing 11 underperforming stores in nine states. Here is a list of which ones are closing:
• Natrona Heights Plaza, Natrona Heights. (124 employees, opened in 1956)
• Century III Furniture and Clearance, West Mifflin. (3 employees, opened in 2000)
• Ernst & Young Plaza (Citicorp Plaza), Los Angeles. (136 employees, opened in 1986)
• The Citadel, Colorado Springs, Colo. (105 employees, opened in 1984)
• Westminster Mall, Westminster, Colo. (110 employees, opened in 1986)
• Palm Beach Mall, West Palm Beach, Fla. (71 employees, opened in 1979)
• Mauna Lani Bay Hotel, Island of Hawaii, Hawaii (3 employees, opened in 1983)
• Lafayette Square, Indianapolis (84 employees, opened in 1974)
• Brookdale Center, Brooklyn Center, Minn. (72 employees, opened in 1966)
• Crestwood Mall, St. Louis (176 employees, opened in 1969)
• Bellevue Center, Nashville, Tenn. (76 employees; opened in 1990)
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Eagle egg breaks, parents abandon nest
- Toole decides to remain at Robert Morris after interviewing with Fordham
- Ligonier Valley YMCA marks start of 32,000-square-foot expansion
- Warrant issued for Hopwood man accused of burglary
- Improperly tapped gas line a possibility in NYC blast
- Penguins coach Johnston’s mother dies
- Norwin High School health teacher charged with selling heroin
- West Virginia men’s basketball team hopes best is yet to come
- Region’s Goodwill spends $51.6M in 2014, report says
- Key Pennsylvania judicial races dot landscape
- Reliable family car feels upscale