Macy’s says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures – including its store in Bangor – after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast.
The company made no mention of closing its store at the Maine Mall in South Portland, a location that had once been occupied by the former Jordan Marsh store. Jordan Marsh was the first store to be built at the Maine Mall in 1969.
In a news release Wednesday, Macy’s said the Bangor store is 143,000 square feet and opened in 1998. Macy’s employs 65 associates at its Bangor store and roughly 235 at its South Portland location.
Macy’s had announced in August that it would need to close stores, but at the time did not know which stores would be shuttered.
Elina Kazan, a Macy’s spokeswoman, said in an email that the Bangor store was a former Filene’s. She said the property would be marketed, but offered no further details.
The retailer said Wednesday that sales at its established stores fell 2.1 percent in November and December compared with the same period last year. Macy’s Inc. pointed to changing consumer behavior and said its performance reflects the challenges facing much of the retail industry.
The company said the 68 store closures are part of the 100 closings it announced in August. Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017. Some workers may be offered positions at nearby stores, but Macy’s estimates that 3,900 employees will be affected by the closures.
Macy’s also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.
Overall, Macy’s said, the job reductions represent about 7 percent of its workforce.
The company, which owns the Macy’s and Bloomingdale’s brands, has been struggling with declining traffic in its stores, where the bulk of its business is still conducted. It said it is closing stores that are “unproductive or are no longer robust shopping destinations,” as well as selling those with highly valued real estate.
It plans to invest some of its savings in growing its digital business.
Macy’s said it 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 nearly 10 percent to $32.30 in after-hours trading.
Press Herald Staff Writer Dennis Hoey contributed to this report.
Comments are not available on this story.
Send questions/comments to the editors.
