Macy’s to close in Columbia
The Macy’s department store in Columbia is slated to close, according to a statement released by the company Wednesday.
The company is consolidating existing stores into 5 regions and 47 local districts, as well as other field support functions.
The company listed 40 Macy’s store closings Wednesday, including the Columbia store, which is expected to close within 8-12 weeks. Macy’s closed four other stores in late 2015, meaning it will close 36 stores across the country in the spring.
The Columbia Macy’s store opened in 2003 and employs 81 people.
The company said an average of 3 to 4 positions will be affected in each of Macy’s and Bloomingdale’s 770 remaining stores, affecting about 3,000 employees nationwide.
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations. Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity,” said Macy’s CEO Terry Lundgren.
“In today’s rapidly evolving retail environment, it is essential that we maintain a portfolio of the right stores in the right places,” Lundgren said in the release. “So we will continue to add stores selectively while also being disciplined about closing stores that are unproductive or no longer robust shopping destinations because of changes in the local retail shopping landscape.”
Columbia Chamber of Commerce President Matt McCormick said the announcement was disappointing. He said while Macy’s played a large presence in the Shoppes at Stadium, owned by TKG Biscayne, LLC, other large department stores still thrive.
“I would assume it’s one of the anchor stores, but also, along with the other stores that are there with Bed, Bath and Beyond and Dick’s Sporting Goods and the others that are in there,” McCormick said.
A separate news release announced a nearly five percent in-store sales decline in November and December 2015, compared to the same time the year before. Lundgren credited the warm weather in those months, especially in the northern U.S.
“About 80 percent of our company’s year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats, gloves and scarves,” Lundgren said.
The company said associates displaced by the closings may be offered jobs in nearby stores if possible, and eligible full-time and part-time employees who are laid off will be offered severance benefits.
The news release from Macy’s also announced the closure of the St. Louis service call center, “affecting approximately 750 employees.” The work load from its closure will be split amongst its three other call centers, creating 640 jobs amongst locations in Arizona, Florida and Ohio.
Macy’s said the 40 stores closing account for around $375 million in sales. Columbia’s Deputy City Manager Tony St. Romaine said he could not provide how much sales tax the Macy’s store in Columbia brought the city, as specific store records are closed. County records show TKG Biscayne and Macy’s paid $169,495.35 in property taxes for 2015.
