Macy’s to Close Stores and Cut 899 Jobs

By Alice Turner
13:13, December 29th 2007
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Macy’s to Close Stores and Cut 899 Jobs

Macy’s Inc., the department store holding company and owner of Macy's and Bloomingdale's, made public it plans to close stores with poor sales and eliminate.

Macy’s stores in Akron, Canton and North Randall, Ohio; Lake Charles, La.; Riverdale, Utah; Indianapolis; Oklahoma City; Houston; and Dallas will be shut down.

Although details regarding the closing weren’t given, the final clearance sales will start in the next weeks, according to the Cincinnati department-store operator.

"While the decision to close stores is difficult, it is necessary that we do so selectively in locations with declining sales and where we have been unable to identify sufficient growth opportunities," Macy's Chairman and Chief Executive Terry J. Lundgren said.

After buying May in 2005, Macy’s struggled with more than 400 stores. Especially in the Midwest, business has weakened for the company and the main reason is the fact that customers of stores that were formerly called Marshall Field's see Macy’s as a down-market intruder.

Macy's owns and manages approximately 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's.

The company recently opened 10 new stores and one furniture gallery. In the next year it plans to open five new stores. Six to eight locations are planned for 2009.

After acquiring May for $11 billion, Macy’s became the second-largest department store company after Sears Holdings.

In afternoon trading, Macy's shares were at $25.30, up 26 cents, or 1%.



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