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Macy's shutting down stores


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Macy's to close 11 underperforming stores

The store closings will affect 960 employees. The department store operator also lowered its forecast for the fourth quarter after one of the weakest holiday seasons in decades.

By Elizabeth Strott

The consumer slowdown has taken its toll on department store operator Macy's . The Cincinnati company this morning said it will close 11 underperforming stores in nine states, affecting 960 employees.

"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," Chief Executive Officer Terry Lundgren said in a press release.


The locations of stores affected:

  • Ernst & Young Plaza (Citicorp Plaza), Los Angeles (135,000 square feet; 136 employees; opened in 1986).

  • The Citadel, Colorado Springs, Colo. (195,000 square feet; 105 employees; opened in 1984).

  • Westminster Mall, Westminster, Colo. (156,000 square feet; 110 employees; opened in 1986).

  • Palm Beach Mall, West Palm Beach, Fla. (190,000 square feet; 71 employees; opened in 1979).

  • Mauna Lani Bay Hotel, Island of Hawaii (3,000 square feet; three employees; opened in 1983).

  • Lafayette Square, Indianapolis (160,000 square feet; 84 employees; opened in 1974).

  • Brookdale Center, Brooklyn Center, Minn. (195,000 square feet; 72 employees; opened in 1966).

  • Crestwood Mall, St. Louis (166,000 square feet; 176 employees; opened in 1969).

  • Natrona Heights Plaza, Natrona Heights, Pa. (73,000 square feet; 124 employees; opened in 1956).

  • Century III Furniture and Clearance, West Mifflin, Pa. (83,000 square feet; three employees; opened in 2000).

  • Bellevue Center, Nashville, Tenn. (211,000 square feet; 76 employees; opened in 1990).

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Too many store competing with each other in a confined geographical area spells disaster. Macy's, Home Depot, Lowe's, Linens 'N" Things, Starbucks, they all fell prey to the allure of Mammon. Their greed, and myopic understanding of economics and consumer spending thresholds, is the cause of this monumental collapse. Tell me you didn't think it was strange every time a new Home Depot or Starbucks would open only a few miles from an existing one (s).

The only folks making money are the developers of these "cookie cutter" shopping centers, who constantly sucker in municipalities with the promise of more tax revenue. In the area where my brother lives, Home Depot plans on closing 11 stores in the coming year. Wonder why? Hey, maybe because you dunces built 15 stores in a 10 mile radius and expected the housing boom to last forever. I just feel bad for all the regular folks that will lose their jobs.

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Too many store competing with each other in a confined geographical area spells disaster. Macy's, Home Depot, Lowe's, Linens 'N" Things, Starbucks, they all fell prey to the allure of Mammon. Their greed, and myopic understanding of economics and consumer spending thresholds, is the cause of this monumental collapse. Tell me you didn't think it was strange every time a new Home Depot or Starbucks would open only a few miles from an existing one (s).

The only folks making money are the developers of these "cookie cutter" shopping centers, who constantly sucker in municipalities with the promise of more tax revenue. In the area where my brother lives, Home Depot plans on closing 11 stores in the coming year. Wonder why? Hey, maybe because you dunces built 15 stores in a 10 mile radius and expected the housing boom to last forever. I just feel bad for all the regular folks that will lose their jobs.

I agree with your generalizations borgo, but the macy's at the gardens mall does not fall into what you described. that mall is in a very well to do area.

didn't macys already merge with burdines a while ago. this doesn't speak well to the 09 economy.

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I agree with your generalizations borgo, but the macy's at the gardens mall does not fall into what you described. that mall is in a very well to do area.

didn't macys already merge with burdines a while ago. this doesn't speak well to the 09 economy.

I didn't comment on the economic standing of the communities. Over building of various stores has taken place in virtually every location. Rather than accepting a certain amount of market share for their existing stores, their flawed model caused them to try to capture more of the market by building more stores in relatively close proximity to the existing one. They wanted more of the pie instead of accepting the nice piece they already had. Now, in cases like Linens 'N' Things, Macy's, etc., stores are either closing outlets or going out of business. This problem is not just in the retail sector, but many others as well. Look at the "Big Three" carmakers. GM will close something like 2,000 dealerships in the coming year. Did you ever think you'd see the day that all three would be bankrupt? Something is critically wrong with what they are teaching these executives in business schools.

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I didn't comment on the economic standing of the communities. Over building of various stores has taken place in virtually every location. Rather than accepting a certain amount of market share for their existing stores, their flawed model caused them to try to capture more of the market by building more stores in relatively close proximity to the existing one. They wanted more of the pie instead of accepting the nice piece they already had. Now, in cases like Linens 'N' Things, Macy's, etc., stores are either closing outlets or going out of business. This problem is not just in the retail sector, but many others as well. Look at the "Big Three" carmakers. GM will close something like 2,000 dealerships in the coming year. Did you ever think you'd see the day that all three would be bankrupt? Something is critically wrong with what they are teaching these executives in business schools.

heres the problem with bankrupt........ the way us law is, filing for bankruptcy is basically a get out of financial jail free card.

my friggin nephew filed for bankruptcy cause he ran up 30 some odd grand of cc debt.

so they wiped the slate clean but stained his credit rating. oh my

these bailout schemes are a joke. who wouldn't go cap in hand to gov't

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heres the problem with bankrupt........ the way us law is, filing for bankruptcy is basically a get out of financial jail free card.

Not at all dude, that is hardly the case. The road back to financial normalcy after declaring Chapter 7 can hardly be considered anything remotely close to getting out of jail for free.

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heres the problem with bankrupt........ the way us law is, filing for bankruptcy is basically a get out of financial jail free card.

my friggin nephew filed for bankruptcy cause he ran up 30 some odd grand of cc debt.

so they wiped the slate clean but stained his credit rating. oh my

these bailout schemes are a joke. who wouldn't go cap in hand to gov't

Voila! I'm going to charge a pair of those coaches club PSL's on my Visa card and then declare bankruptcy. Brilliant!

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heres the problem with bankrupt........ the way us law is, filing for bankruptcy is basically a get out of financial jail free card.

my friggin nephew filed for bankruptcy cause he ran up 30 some odd grand of cc debt.

so they wiped the slate clean but stained his credit rating. oh my

these bailout schemes are a joke. who wouldn't go cap in hand to gov't

Totally agree, JW.

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I guess all the hoity toity's have been shopping at Walmart with the rest of us untermensch.

:Typotux:

Apparently even Walmart isn't immune:

"Even Wal-Mart Stores Inc., one of retailing's bright spots, finally buckled under the pressures of the deteriorating economy. The world's largest retailer reported a sales gain smaller than Wall Street expected and cut its fourth-quarter earnings forecast."

Friday January 9, 11:44 am ET

By Anne D'Innocenzio, AP Retail Writer

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