Macy's To Close 11 Stores In 9 States (960 Jobs Lost)

[OhioChick]

Source: Internet Broadcasting Systems, Inc./AP

Closings Will Affect 960 Employees

8:50 am EST January 8, 2009

NEW YORK -- Macy's said it will close 11 underperforming stores in nine states -- affecting 960 employees -- after one of the weakest holiday seasons in years.

"These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores," Terry J. Lundgren, chairman, president and chief executive officer of Macy’s, Inc., said in a statement. "While new store growth has slowed in the current economy, our long-term strategy is to continue to selectively add new stores while closing those that are underperforming."

Stores slated for closure are located in Colorado, California, Florida, Tennessee, Hawaii, Indiana, Minnesota, Missouri and Pennsylvania. Cincinnati-based Macy's Inc. said the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter.

"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," Lundgren said.

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