Macy’s at Irvine Spectrum Center to close and be replaced by 20 new stores
The Macy’s department store at the Irvine Spectrum Center will close early this year as part of the company’s plan to shut 40 locations nationwide as a result of what it called “disappointing” sales and earnings in the past year.
Four of the stores have already closed. The rest will shut down in early spring and will hold final eight- to 12-week clearance sales beginning Monday.
Macy’s Inc., which has about 770 locations, announced the store closures Wednesday as a strategy to save about $400 million in expenses.
A company news release said sales declined by 5.2% during November and December, compared with the same period a year earlier. Figures for the Irvine store were not immediately available.
“We are making adjustments to become more efficient and productive in our operations,” Terry Lundgren, the company’s chairman and chief executive, said in a statement. “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.”
The Macy’s at the Irvine Spectrum Center mall opened in 2002 and occupies 140,000 square feet.
The company said the store’s 112 employees may be offered positions at nearby stores. Severance benefits will be offered to eligible employees who are laid off, the company said.
The Irvine Co., owner of the Spectrum Center, announced Thursday that the Macy’s site will be converted into two buildings containing 20 new stores.
As part of a $150 million plan, the mall also will install new landscaping, outdoor seating and parking garage improvements.
“The Macy’s closing has been contemplated for months and has provided us with a unique opportunity to rebalance Irvine Spectrum Center with additional retail stores,” Easther Liu, chief marketing officer for Irvine Co. Retail Properties, said in a statement. “We are always exploring how we evolve Irvine Spectrum Center’s vibrancy and relevancy to marry with our customers’ evolving tastes.”
The Irvine location is one of three Macy’s stores being eliminated in California. The others are at Westfield Century City in Los Angeles and Country Club Plaza in Sacramento.
