By ANNE D’INNOCENZIO
NEW YORK (AP) — Macy’s has disclosed the locations of 66 stores that it will be closing early this year, including two in San Diego. The majority of these stores will close during the company’s first fiscal quarter of this year, Macy’s said.
The announcement is part of a strategy announced in February 2024, that calls for shuttering roughly 150 underproductive stores while upgrading its remaining 350 stores through fiscal 2026. The closings come as Macy’s is looking to improve its sales as shoppers have pulled back on discretionary items amid still high inflation.
Among the stores to be shuttered are the Macy’s locations at 1555 Camino De La Reina in Mission Valley and the Chula Vista location at 2015 Birch Road at the Otay Ranch Town Center.
In November, Macy’s reported falling profit and sales in its fiscal third quarter. It raised sales expectations for the current fiscal year, but lowered profit projections.
The Macy’s stores set to close for 25% of the company’s overall square footage but less than 10% of its sales, the company had said.
On Friday Kohl’s said it was closing 27 underperforming locations in 15 states by April — a fraction of its 1,150 store base — as the struggling department store chain aims to boost profitability and improve sagging sales.
Kohl’s declined to disclose the number of employees affected. It said workers have been informed and were offered a “competitive severance package” or the chance to apply to other open roles at Kohl’s. Ten stores in California were identified for closure, including two in San Diego at 5505 Balboa Ave. and in Encinitas at 134 N El Camino Real.
The announcement comes as the Menomonee Falls, Wisconsin-based chain has posted 11 consecutive quarters of sales declines. Michaels CEO and retail veteran Ashley Buchanan is set to take over as the chief executive of Kohl’s next week.
Buchanan will take over the top job from Tom Kingsbury, who will stay as an adviser to the new CEO and retain his position on Kohl’s board until his scheduled retirement in May. Kingsbury served as Kohl’s interim CEO in December 2022 and was named its permanent leader in February 2023.
U.S. department stores have had a challenging few years as consumers continue to seek out deals online.
