Macy’s Store Closings: Up to 40 More to Shut Doors

The company now has 770 stores in 45 states; it has closed 52 stores over the past five years and opened 12 new ones. In the coming season, it is opening its stores in Ponce, PR, a Bloomingdale’s in Honolulu, six Macy’s Backstage, and one Bloomingdale’s store. It expects that the locations would have about $300 million in combined revenue. “Our customers have expressed interest in electronics for self-purchase and gift-giving, and this collaboration with Best Buy reinforces Macy’s as a shopping destination throughout the year for the products that are most in demand”, said Macy’s president Jeff Gennette in a statement.

Macy’s has beefed up its eCommerce operations in the past several years to speed up its online order delivery services, and provide same-day delivery services, or in-store pick up of orders made online.

“Macy’s is committed to treating associates affected by store closings with respect and openness”, the news release said. They will also open ten independent Bluemercury outlets.

You may soon see a Best Buy shop in a Macy’s store near you. Some of the new stores will replace the locations of stores that closed.

The 300-square-foot space will be staffed by Best Buy employees and feature Samsung smartphones, tablets and smart watches, as well as audio devices and accessories from Samsung and other brands. The company stated that it hasn’t selected all of the stores that would be closed yet. Activist investor and hedge fund Starboard Value LP, has forced the retailer to spin-off key properties and make better use of it.

“Physical stores remain absolutely vital to our omnichannel strategy, which provides local touchpoints and tailored merchandise assortments for shoppers in almost every major market”, said Terry J. Lundgren, Macy’s, Inc. chairman and CEO. The comapny saw disappointing sales in its most recent quarter and lowered its full-year guidance for the fiscal year, reports CNNMoney. Sales are projected to be down 1% in 2015 and dilute EPS is estimated to be within the $4.7-4.8.