Macy’s says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.
The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared with the same period last year. Macy’s pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry.
The company said the 68 store closures are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by midyear 2017. Some may be offered positions at nearby stores, but Macy’s estimates that 3,900 employees will be affected by the closures. The company currently operates 730 Macy’s stores.
Eight Macy’s stores will close in Texaas, including two in the Dallas area, at Southwest Center in Dallas and Collin Creek Mall in Plano. Two stores are listed for closure in Houston and one each in Beaumont, El Paso, Pasadena and Tyler.
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Macy’s also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.
Overall, Macy’s said the job reductions represent about 7 percent of its workforce.
The company, which owns the Macy’s and Bloomingdale’s brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted. It said it is closing stores that are “unproductive or are no longer robust shopping destinations” as well as selling those with highly valued real estate.
It plans to invest some of its savings to grow its online business.
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 company is scheduled to report full results in February.
Shares in Macy’s fell nearly 10 percent to $32.30 in after-hours trading.
Parkdale, Beaumont (171,000 square feet; opened in 2002; 67 associates)
Southwest Center, Dallas (148,000 square feet; opened in 1975; 68 associates)
Sunland Park, El Paso (105,000 square feet; opened in 2004; 71 associates)
Greenspoint, Houston (314,000 square feet; opened in 1976; 70 associates)
West Oaks Mall, Houston (244,000 square feet; opened in 1982; 135 associates)
Pasadena Town Square, Pasadena (209,000 square feet; opened in 1962; 78 associates)
Collin Creek, Plano (199,000 square feet; opened in 1980; 103 associates)
Broadway Square, Tyler (100,000 square feet; opened in 1981; 65 associates)