Macy’s, Inc. Outlines Normal-Course Adjustments to Stores Portfolio

CINCINNATI--(BUSINESS WIRE)--Macy’s, Inc. (NYSE:M) today detailed a series of normal-course adjustments to its portfolio of Macy’s and Bloomingdale’s stores across the country.

“This leads us to open new stores where we see the opportunity to fill gaps in important markets, as well as to make the tough decision to selectively close underperforming stores that no longer meet our performance requirements or where leases are not being renewed.”

“We remain committed to operating a successful and growing stores business as part of our company’s Omnichannel strategy for serving customers wherever, whenever and however they prefer to shop,” said Karen M. Hoguet, chief financial officer of Macy’s, Inc. “This leads us to open new stores where we see the opportunity to fill gaps in important markets, as well as to make the tough decision to selectively close underperforming stores that no longer meet our performance requirements or where leases are not being renewed.”

Once all of these changes have been implemented, Macy’s will operate 798 stores in 45 states, the District of Columbia, Puerto Rico and Guam. Bloomingdale’s will have a total of 37 full-line and home stores, as well as 13 Bloomingdale’s Outlet stores. Bloomingdale’s also operates in Dubai under a license agreement with Al Tayer Group LLC.

(Editor’s Note: Macy’s, Inc. this morning also issued a separate news release announcing December sales results.)

Store Closings

The company will close the following six stores in early spring 2013. Final clearance sales will begin on Monday, Jan. 7, at the five Macy’s locations (and on Sunday, Jan. 6, at Bloomingdale’s Fashion Show), and run for between seven and 11 weeks.

Bloomingdale’s:

• Fashion Show Home Store, Las Vegas, NV (99,000 square feet; opened in 2002; 35 associates).

Macy’s:

• Paseo Colorado, Pasadena, CA (158,000 square feet; opened in 1980; 116 associates);
• Belmont, MA (75,000 square feet; opened in 1978; 101 associates);
• Downtown Honolulu, HI (80,000 square feet; opened in 1850; 91 associates);
• Downtown St. Paul, MN (362,000 square feet; opened in 1963; 153 associates);
• Downtown Houston, TX (791,000 square feet; opened in 1947; 138 associates).

The company is committed to treating associates affected by store closings with respect and openness. Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits.

In conjunction with these store closings, an estimated $2 million to $4 million of costs will be booked in the fourth quarter of 2012. These costs were not previously included in earnings guidance provided by the company.

Planned Store Openings

As previously announced, nine new and replacement Macy’s and Bloomingdale’s stores are currently planned and/or under construction. One new Bloomingdale’s Outlet store is being announced today.

New Macy’s stores will be opening in:

• Mall of Victor Valley, Victorville, CA (103,000 square feet; to open spring 2013; approximately 140 associates);
• Gurnee Mills, Gurnee, IL (140,000 square feet; to open in fall 2013; approximately 200 associates);
• Mall at Bay Plaza, The Bronx, NY (160,000 square feet; to open in fall 2014; approximately 225 associates);
• University Town Center, Sarasota, FL (160,000 square feet; to open in fall 2014; approximately 175 associates);
• Shops at Summerlin, Las Vegas, NV (180,000 square feet; to open in fall 2014; approximately 160 associates).

An all-new Macy’s store is being built in Westfield South Shore in Bay Shore, NY (200,000 square feet; to open in fall 2013; approximately 180 associates) to replace an older store in the same shopping center.

Macy’s is expanding its presence in Fashion Show in Las Vegas with a new Macy’s Men’s Store (105,000 square feet; to open in spring 2013) and a significantly remodeled main store. The current Macy’s Fashion Show workforce of 495 associates is expected to expand to 560 associates by the end of 2013.

A new Bloomingdale’s store is being built in Glendale Galleria in Glendale, CA (120,000 square feet; to open in fall 2013; approximately 175 associates).

In addition, an all-new Bloomingdale’s is being built in Stanford Shopping Center in Palo Alto, CA (120,000 square feet; to open in spring 2014) to replace an older store in the same shopping center.

A new Bloomingdale’s Outlet store will open in fall 2013 in Fashion Outlets Chicago now being built in Rosemont, IL. It will be about 25,000 square feet and employ approximately 55 associates. This new location will bring to 13 the total number of Bloomingdale’s Outlets, a new concept launched in fall 2010. Four were opened in 2010, with another three added in 2011 and five added in 2012.

Macy’s Ridgedale Center Expansion, Consolidation

Macy’s today announced the consolidation of its two separate stores in Ridgedale Center in Minnetonka, MN, into the one expanded location beginning in early 2014. The current 202,000-square-foot Macy’s main store will be expanded and upgraded by approximately 84,000 square feet, with construction beginning in June 2013. When this project is completed in early 2014, the men’s and home businesses currently in a separate 129,000-square-foot building will move into the main Macy’s store. The smaller building at Ridgedale Center will be closed and acquired by General Growth Properties for redevelopment.

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2011 sales of $26.4 billion. The company operates about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s, as well as the macys.com and bloomingdales.com websites. The company also operates 12 Bloomingdale’s Outlet stores. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, changes in expected synergies, cost savings and non-recurring charges, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/pressroom).