Following Dismal Holiday Sales, Macy’s Closing More Stores, Selling S.F. Store

Macy's Stonestown Galleria

After posting disappointing holiday returns, Macy’s said this week it will eliminate over 10,000 jobs nationwide and close 65 stores this year. Comparable sales dipped 2.1% in November and December, according to CNBC.

The retailer also is in the process of selling its 280k SF store at San Francisco’s Stonestone Galleria for $41M, according to the San Francisco Business Times. It sold its Union Square men’s store to Morgan Stanley for $250M last year. Morgan Stanley is expected to transform the men’s store into mixed-use retail and open office space.

The Stonestone store will be sold to General Growth Properties, which also operates the mall. Macy's will lease back the store while the owner decides what to do at the location. No set date has been disclosed for Macy’s exit.

The recent sales and closures of stores is part of Macy’s ongoing strategy to reduce its brick-and-mortar presence. Three of the 68 announced stores closed last year, and the remaining 65 are expected to close by midyear and will help save the company $550M annually, the firm reports. CBRE will assist Macy’s in selling 33 of these stores across 20 states.

Macy’s plans to invest $250M toward its digital business; grow its Bluemercury beauty shops and Macy’s Backstage off-price stores; and expand in China, according to CNBC.

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