IBJNews

UPDATE: Macy's closing wounds ailing mall

Back to TopCommentsE-mailPrintBookmark and Share

Macy's decision to close its store at Lafayette Square could deal a devastating blow to a mall already reeling from the loss of other major tenants.

 

Mall owner Ashkenazy Acquisition Corp. of New York has been working to stem an exodus of retailers since it bought the 113-acre, west-side property from locally based Simon Property Group in 2007.

 

Sears Holdings Corp. said in October that it would close its store there on Jan. 11, leaving 110 employees at the department store and automotive center out of work. And apparel retailer Steve & Barry's liquidated its stores, including locations at Lafayette Square and Washington Square malls.

 

Ashkenazy is investing $12 million in a Lafayette Square revamp that includes the December opening of a 75,000-square-foot entertainment center called Xscape. A 95,000-square-foot Shoppers World department store—the first in the Midwest—also opened last month, on the first floor of the former JC Penney space. Shoppers World is a family-owned, New York-based discount chain that operates 10 stores in New York and New Jersey.

 

Still, retail experts say it will be challenging to find replacement anchors to fill the void left by Sears, Steve & Barry's and now Macy's, which leaves a 160,000-square-foot hole in the mall.

 

The Macy's at Lafayette Square is one of 11 locations that Cincinnati-based Macy's Inc. said this morning that it will shut down. Stores slated to close include locations in Los Angeles, West Palm Beach, Fla., Nashville, Tenn., and St. Louis.

 

Final clearance sales will begin within the week. The closures will affect 960 employees, including 84 at Lafayette Square.

 

Workers affected by the cuts will be considered for positions at other Macy's locations and those laid off will be given severance benefits, the company said.

Current economic conditions led Macy's to close the stores, CEO Terry J. Lundgren said in a statement.

 

"While new store growth has slowed in the current economy," he said, "our long-term strategy is to continue to selectively add new stores while closing those that are underperforming."

 

Macy's Inc. says the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter.

 

Macy's opened at Lafayette Square in 1974. Other area stores are at Castleton Square, Glendale and Greenwood Park malls.

For more information or to weigh in on Macy's departure, go to IBJ's Property Lines blog.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT