CINCINNATI and PLANO, TX—Add Macy's Inc. and JCPenney to the list of national retailers planning to close underperforming locations this year. Between them, the two chains on Thursday announced a total of 53 closures, including 39 for Penney, which earlier in the week had reported a 3.7% year-over-year increase in same-store sales during the holiday season.

Macy's, which also reported low-single-digit Y-O-Y gains in holiday sales, said Thursday it would reinvest an estimated $140 million in savings from the store closings and other operational changes. Technology, talent and business development will be funded through the cost savings, Macy's said, as the Cincinnati-based retailer continues pursuing an omnichannel strategy.

Among other initiatives it's taking in 2015, Macy's is considering the establishment of an off-price business. Although the off-price scenario still in the early stages of planning, the company believes that its “omnichannel infrastructure and insight could lead to innovative ways to deliver value to additional segments of the customer marketplace.”

In common with Penney's list of store closings, the Macy's downsizing touches on all regions of the US. Representing less than half the number of stores Penney's plans to shutter in early spring, the roster nonetheless totals more than two million square feet, with the 60-year-old, four-story Northland Center location in Southfield, MI both the oldest and largest at 504,000 square feet. It opened under the Hudson's brand in 1954, and represents the suburban Detroit mall's last remaining anchor.

One shopping center in particular, the 497,000-square-foot Upper Valley Mall in Springfield, OH, will be hit with a double whammy. A day after Penney included the Upper Valley location on its list of planned closures, Macy's did the same.

Other Macy's scheduled to close include locations at Metro Center in Phoenix; Cupertino Square Mall, Cupertino, CA; both the main store and the furniture store at the Promenade in Woodland Hills, CA; Gulf View Square, Port Richey, FL; Ledgewood Mall in Ledgewood, NJ; ShoppingTown Mall, DeWitt, NY; Rotterdam Square, Schenectady, NY Wendover, Greensboro; NC; Kingsdale Shopping Center, Columbus, OH; Richmond Town Square, Richmond Heights, OH; and Southland Mall in Memphis.

In addition to the Upper Valley Mall location, Plano, TX-based Penney plans to close stores in Dalton, Duluth and Lagrange; GA; Dekalb and Quincy, IL; Michigan City, IN; Mason City, Waterloo and West Burlington, IA; Hanover and Taunton, MA; Adrian, MI; Vineland, NJ; Kingston, NY; Asheboro, Elizabeth City, Staesville and Wilson, NC; Columbus and Greenville, OH; North Bend, OR; Chambersburg, Hummels Wharf, Media, State College and York, PA; Providence, RI; Aiken and Murrells Inlet, SC; Aberdeen, SD; Brenham, TX; Manassas and Williamsburg, VA; Rutland and St. Albans, VT; and Oshkosh, Racine and Shawano, WI.

In a note to investors, Cowen Research analyst James Sullivan reported that based on a review of the Penney list, Chattanooga, TN-based CBL “appears to be the hardest hit in our coverage universe. Overall REIT exposure appears limited with just 23% of the announced closures, but CBL alone accounts for approximately 45% of that exposure. This underscores our concern that B malls will be hit harder from initial store closures.”

The news follows Wet Seal's anouncement earlier this week that it would close 338 stores effective immediately, two-thirds of the struggling fashion retailer's total. Last month, Sears Holdings said it would bump up its planned closings for this year from 130 to 235.

Instant Insights /

Macy's, Penney Slate Dozens of Closings

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