January 5, 2017
Following a difficult holiday season, Macy’s and Sears announced they would continue whittling down their existing retail stores.
Macy’s comparable sales fell 2.1% in November and December, prompting the struggling chain to announce it could cut its workforce by approximately 6,200. On the real estate side, Macy’s is moving forward to shut down 68 stores nationwide, with 63 to be shuttered in spring and two more to be closed in the middle of 2017. The remaining locations will be sold. In the meantime, Macy’s already closed stores in North Hollywood, CA; Honolulu, HI and West Valley City, UT.
Meanwhile, Seritage Growth Properties, a REIT spun off from Sears, announced that the retailer exercised its right to terminate leases on 19 unprofitable stores. The stores total 1.9 million square feet and account for $5.9 million in rent. This is the second time Sears closed part of the 235 stores sold off to Seritage in July 2015. In September, 2016, the retailer terminated leases on 17 unprofitable stores, following an earlier announcement it would shut down Sears and K-Mart locations.
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