Due to slumping sales, Macy’s Inc., the Cincinnati-based department store clothing retailer, announced last week it is closing 40 stores by this spring, including a location at the Hudson Valley Mall in Kingston.
Final clearance sales began Monday at the Kingston Macy’s, and will run for between eight to 12 weeks when the store is anticipated to close by. Opened in 1995, the 121,000-square-foot store in Kingston has 72 employees.
Of the 40 stores slated to close, four closed in 2015, while the remaining 36 will close this spring. The move is expected to save Macy’s roughly $400 million; the 36 stores closing this spring generate $375 million in annual sales, officials said.
In a Jan. 6 release, Macy’s Inc. Chairman and CEO Terry J. Lundgren said he anticipated “short-term pain” as the brand realigns. The company reported a 5.2 percent drop in sales for the November/December period.
“In light of our disappointing 2015 sales and earning performance, we are making adjustments to become more efficient and productive in our operations,” Lundgren said. “In today’s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places. “We will continue to add stores selectively while also being disciplined about closing stores that are unproductive or no longer robust shopping destinations because of changes in the local retail shopping landscapes.”
Other cost-cutting moves announced by Macy’s include consolidating its existing stores into five regions and 47 local districts, down from the current structure of seven regions and 58 local districts. Of the stores that will continue to operate going forward, roughly 3,000 employees will be affected by staffing level adjustments; approximately 50 percent of whom will be placed in other positions.
Macy’s Inc., which also has a corporate office in New York City, operates the Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury brands. It currently operates 770 Macy’s stores and another 120 locations between its other brands.
The company said five new Macy’s and Bloomingdale’s stores are scheduled to open over the next three years, including a 150,000-square-foot Bloomingdale’s location at the SoNo Collection shopping center in Norwalk. That store, which will staff roughly 200 employees, is slated to open in the fall of 2018.
Macy’s, Inc. operates Macy’s stores in Poughkeepsie, White Plains, Yonkers, Jefferson Valley, Danbury, Stamford, Nyack and Nanuet as well as a Bloomingdale’s location in White Plains.
