Retailer closing department store
A department store in the region is closing its doors.
Macy’s announced the closure of four Michigan Macy’s stores, including the 102,000-square-foot one at Lakeview Square Mall in Battle Creek, which has 51 employees.
The three other Michigan locations are in Lansing, Harper Woods and Westland.
Macy's announcement of “actions to streamline its store portfolio” came on Jan. 4 and included 68 stores.
The move is to allow Macy’s to “focus resources on strategic priorities, improve organizational agility and reduce expense.”
Macy’s expects to save $550 million annually with the closures, allowing the company to invest $250 million into several ventures, including its digital business, store-related growth and China.
The closures are part of the 100 store closures announced in August 2016.
Terry Lundgren, Macy's chairman and CEO, said the company is seeing declining traffic in its stores.
“Over the past year, we have been focused and disciplined about making strategic decisions to position us to gain market share and return to growth over time,” Lundgren said. “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.”
The company expects 3,900 employees to be affected. Part- and full-time employees will be offered severance and may be offered positions at nearby stores.
Macy’s is planning or constructing four new Macy’s and Bloomingdale’s stores in the U.S.
The company is also expanding the two brands in the Middle East, with stores planned in Abu Dhabi, U.A.E. and Kuwait.
The company also continues to expand its Macy’s Backstage and Bluemercury brands within its stores and, in the case of Bluemercury, free-standing business as well.