Macy’s closing stores in Simi Valley, Santa Barbara
Macy’s will close its Paseo Nuevo store in downtown Santa Barbara in early spring and a Simi Valley Town Center location mid-year, Macy’s announced on Jan. 4.
The two tri-county locations are among 68 stores that will shutter in 2017 as part of a planned 100-store downsizing. The women’s store, one of two Macy’s locations at the Simi Valley Town Center, will remain open while its men’s, children’s and home furnishings store will close. Macy’s currently has 730 locations.
Tri-county brokers and retail experts expected one of the Santa Barbara locations to close as the retail giant has looked to consolidate as sales have continually slid. Holiday sales dipped about 2 percent from last year.
Macy’s announced in August last year plans to close 100 underperforming stores and closed three in 2016.
The two tri-county locations have a combined 182 employees and cover more than 330,000 square feet. Macy’s plans to shed about 10,000 employees overall.
It will save the company an estimated $550 million a year that it will use to invest, including $250 million in its digital business, and grow its Bluemercury beauty shops and Macy’s Backstage off-price stores, the company said. It also plans to invest in China.
“We are closing locations that are unproductive or are no longer robust shopping destinations due to changes in the local retail shopping landscape, as well as monetizing locations with highly valued real estate,” Macy’s Chairman and CEO Terry Lundgren said in a news release. The company’ strategy continues to evolve based on the changes in customers’ shopping behaviors, including a focus on buying online, pickup in store and mobile-enabled shopping, he added.
Approximately $250 million of charges or 50 cents per share — of which approximately $210 million is expected to be cash — are expected to be recorded in the fourth quarter of 2016.
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