Macy’s in First Colony Mall not affected by store closings

Macy’s in First Colony Mall not affected by store closings

By DIANE TEZENO
1.09.09

The Macy’s store in First Colony Mall, one of the Sugar Land mall's four anchor stores, is not among the recently announced list of stores being closed by the national retailer.

According to a company press release issued on Jan. 8 by Macy’s corporate office, the retail chain is closing 11 stores in various locations across the country due to low-performance.

"These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc said in the press release.

"While new store growth has slowed in the current economy, our long-term strategy is to continue to selectively add new stores while closing those that are underperforming."

Closings will occur at the following Macy’s locations: Ernst and Young Plaza, Los Angeles, CA, The Citadel, Colorado Springs, CO, Westminster Mall, Westminster, CO, Palm Beach Mall in West Palm Beach, FL, Mauna Lani Bay Hotel, Island of Hawaii, Lafayette Square, Indianapolis, IN, Brookdale Center, Brooklyn Center, MN, Crestwood Mall, St. Louis, MO, Natrona Heights Plaza, Natrona Heights, PA and Century III Furniture and Clearance, West Mifflin, PA, Bellevue Center, Nashville, TN.

According to the press release, final clearance sales at stores, slated for closing, will begin within the next week, excluding the Hawaii location.

"The decision to close stores is difficult, and often occurs when the market changes, new competing shopping centers are opened nearby to existing older ones, or when customers change shopping habits. In the store closing process, we are committed to treating affected associates with respect and openness," Lundgren said.

Costs associated with the 11 store closings will be approximately $65 million, according to the release.

In a separate press release also issued Jan. 8, the retail store also reported a decrease of 4.7 percent in total sales ($4.397 billion) for the five weeks ended Jan. 3, 2009, compared to total sales ($4.614 billion) for the same time period last year.