Macy's will close 5 underperforming stores

AP News
Posted: Jan 05, 2010 2:25 PM

Department store operator Macy's Inc. said Tuesday it will close five underperforming stores and cut about 307 staff positions at those sites.

The company said the closures are part of an "ongoing annual process to selectively prune underperforming locations," and added it also plans to open new stores to fill gaps in local markets, although it did not disclose specifics.

The company did not give details on why specifically it is closing the stores other than to say they were "underperforming." Last year, Macy's closed 11 stores, and it closed nine stores two years ago.

The company said it will offer staffers jobs at nearby stores "where possible."

Final clearance sales will begin Jan. 10 and run for about 60 days, Macy's said.

After the stores close, Macy's will operate 849 stores, including 809 Macy's and 40 Bloomingdale's. This year Macy's plans to open Bloomingdale's stores in Santa Monica, Calif., and Dubai, its first international location.

The stores that will close are:

_ Downtown Boise, Idaho, with 61 employees

_ Summit Place Mall, Waterford, Mich., with 70 employees

_ Northwest Plaza, St. Ann, Mo., with 71 employees

_ Downtown Missoula, Mont., with 55 employees

_ Burlington Center Mall, Burlington, N.J., with 50 employees.

Three stores that are closing, the ones in Waterford, Mich.; St. Ann, Mo.; and Burlington, N.J.; were formerly owned by May Co., which Macy's acquired in 2005.

Macy's shares fell 15 cents to $16.91 during afternoon trading.