SAN FRANCISCO—Macy’s announced on Wednesday, January 5 that they will be closing 68 stores nationwide, two which are located in San Francisco. The 68 closings are among 100 stores that will close across the country, which was first announced in August 2016.
According to reports, over 10,000 employees will lost their jobs. Of the 68 locations, three were closed in mid-2016, 63 will close in spring 2017 and two in the middle of the year.
In August, the retail chain shared that they planned on closing the Union Square Men’s store, located at 120 Stockton Street, for expansion. In addition to this location, the Stonestown Galleria store will run on a lease from their owners. Both locations are currently being rented out. According to reports, neither location will have layoffs.
Members of the Macy’s management team reported that sales throughout November and December were 2.1 percent lower than the previous prior and that these changes “reflect the challenges that are facing much of the retail industry.”
According to Jeff Gennette, President of Macy’s Inc. (who will replace Terry Lundgren as CEO), the company will be closing “unproductive or are no longer robust shopping destinations.” They plan to reorganize some components of the business and sell a number of properties. An estimated $550 million is to be saved, and the company plans to invest a certain amount of those savings into developing their digital business.
The Associated Press reported that the company “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 more than 10 percent to $32.20 in after-hours trading.”